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12.—(1) No interest or right of any third party relating to any of the rights and liabilities transferred under the second transfer shall arise or become exercisable by virtue of or in connection with this Order.
(2) Save as otherwise provided in this Order, no third party shall incur any liability, or be subject to any obligation, relating to any of the rights and liabilities transferred under the second transfer, by virtue of or in connection with this Order.
(3) Without prejudice to the generality of paragraphs (1) and (2)—
(a)the consequences specified in paragraph (4) shall not arise in respect of any relevant instrument as a result of the second transfer or any other thing done, or matter arising, by virtue of or in connection with the second transfer;
(b)any circumstances which, but for sub-paragraph (a), would give rise to the consequences specified in paragraph (4) shall not be taken to have arisen for the purposes of any relevant instrument.
(4) The consequences are—
(a)the termination of a relevant instrument or any rights or obligations under it;
(b)any right to terminate a relevant instrument or any right or obligation under it becoming exercisable;
(c)any amount becoming due and payable or capable of being declared due and payable;
(d)any other change in the amount or timing of any payment falling to be made or due to be received by any person;
(e)any right to withhold, net or set off any payment becoming exercisable;
(f)any event of default or breach of any right arising;
(g)any right not to advance any amount becoming exercisable;
(h)any obligation to provide or transfer any deposit or collateral;
(i)any right to give or withhold any consent or approval; or
(j)any other right or remedy (whether or not similar in kind to those referred to in paragraphs (a) to (i)) arising or becoming exercisable.
(5) Without prejudice to paragraph (4), any provision in a relevant instrument that, as a result of the second transfer or any other thing done, or matter arising, by virtue of or in connection with the second transfer or this Order, provides for an obligation not to be created, suspends or extinguishes (in whole or in part) such an obligation or renders such an obligation subject to conditions, shall be of no effect.
(6) In this article—
“relevant instrument” means an instrument which provides for interests or rights of third parties and in relation to which Kaupthing is a party or is bound;
“third party” shall be construed in accordance with paragraph 2(3) of Schedule 2 to the Act.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
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