The Financial Collateral Arrangements (No.2) Regulations 2003

1. Introductory Text

2. PART 1 General

   1. 1. Citation and commencement

   2. 2. Revocation

   3. 3. Interpretation

3. PART 2 Modification of law requiring formalities

   1. 4. Certain legislation requiring formalities not to apply to financial collateral arrangements

   2. 5. Certain legislation affecting Scottish companies not to apply to financial collateral arrangements

   3. 6. No additional formalities required for creation of a right in security over book entry securities collateral in Scotland

   4. 7. Certain legislation affecting Northern Ireland companies and requiring formalities not to apply to financial collateral arrangements

4. PART 3 Modification of insolvency law

   1. 8. Certain legislation restricting enforcement of security not to apply to financial collateral arrangements

   2. 9. Certain Northern Ireland legislation restricting enforcement of security not to apply to financial collateral arrangements

   3. 10. Certain insolvency legislation on avoidance of contracts and floating charges not to apply to financial collateral arrangements

   4. 11. Certain Northern Ireland insolvency legislation on avoidance of contracts and floating charges not to apply to financial collateral arrangements

   5. 12. Close-out netting provisions to take effect in accordance with their terms

   6. 13. Financial collateral arrangements to be enforceable where collateral-taker not aware of commencement of winding-up proceedings or reorganisation measures

   7. 14. Modification of the Insolvency Rules 1986 and the Insolvency Rules (Northern Ireland) 1991

   8. 15. Modification of the Insolvency (Scotland) Rules 1986

5. PART 4 Right of use and appropriation

   1. 16. Right of use under a security financial collateral arrangement

   2. 17. No requirement to apply to court to appropriate financial collateral under a security financial collateral arrangement

   3. 18. Duty to value collateral and account for any difference in value on appropriation

6. PART 5 Conflict of laws

   1. 19. Standard test regarding the applicable law to book entry securities financial collateral arrangements

7. Signature

8. Explanatory Note