Transfer order entered into designated system following insolvency
20.—(1) This Part does not apply in relation to any transfer order given by a participant which is entered into a designated system after—
(a)a court has made an order of a type referred to in regulation 22 in respect of that participant, or
(b)that participant has passed a creditors' voluntary winding-up resolution, or
(c)a trust deed granted by that participant has become a protected trust deed,
unless the conditions mentioned in paragraph (2) are satisfied.
(2) The conditions referred to in paragraph (1) are that—
(a)the transfer order is carried out on the same day that the event specified in paragraph (1)(a), (b) or (c) occurs, and
(b)the settlement agent, the central counterparty or the clearing house can show that it did not have notice of that event at the time of settlement of the transfer order.
(3) For the purposes of paragraph (2)(b), the relevant settlement agent, central counterparty or clearing house shall be taken to have notice of an event specified in paragraph (1)(a), (b) or (c) if it deliberately failed to make enquiries as to that matter in circumstances in which a reasonable and honest person would have done so.