### Securities and Futures Ordinance 《證券及期貨條例》

48. Net sum payable on completion of default proceedings
(1) This section applies with respect to any net sum referred to in section 47(1)(a).
(2) Where a bankruptcy or winding-up order has been made, or a resolution for voluntary winding up has been passed, any net sum shall, notwithstanding any provision of section 34 or 35 of the Bankruptcy Ordinance (Cap. 6) or section 264 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), be— (Amended 28 of 2012 ss. 912 & 920)
(a) provable in the bankruptcy or winding up or (as the case may be) payable to the relevant office-holder; and
(b) taken into account, where appropriate, under section 35 of the Bankruptcy Ordinance (Cap. 6) or that section as applied in the case of a winding-up order under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32). (Amended 28 of 2012 ss. 912 & 920)

### Securities and Futures Ordinance 《證券及期貨條例》

49. Disclaimer of property, rescission of contracts, etc.
(1) Section 59 of the Bankruptcy Ordinance (Cap. 6) and section 268 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) do not apply in relation to— (Amended 28 of 2012 ss. 912 & 920)
(a) a market contract;
(b) a contract effected by a recognized clearing house for the purpose of realizing property provided as market collateral;
(c) a market charge; or
(d) any default proceedings.
(2) Section 42 of the Bankruptcy Ordinance (Cap. 6) and section 182 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) do not apply in relation to any act, matter or thing which has been done pursuant to— (Amended 28 of 2012 ss. 912 & 920)
(a) a market contract;
(b) a disposal of property pursuant to a market contract;
(c) the provision of market collateral;
(d) a contract effected by a recognized clearing house for the purpose of realizing property provided as market collateral, or any disposal of property pursuant to such a contract;
(e) a disposal of property in accordance with the rules of a recognized clearing house as to the application of property provided as market collateral;
(f) a disposal of property as a result of which the property becomes subject to a market charge, or any transaction pursuant to which that disposal is made;
(g) a disposal of property made in enforcing a market charge;
(h) a market charge; or
(i) any default proceedings.

### Securities and Futures Ordinance 《證券及期貨條例》

50. Adjustment of prior transactions
(1) No order shall be made pursuant to—
(a) section 49 or 50 of the Bankruptcy Ordinance (Cap. 6);
(b) section 265D or 266 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32); or (Amended 28 of 2012 ss. 912 & 920; 14 of 2016 s. 184)
(c) section 60 of the Conveyancing and Property Ordinance (Cap. 219),
in relation to any matter to which this section applies.
(2) The matters to which this section applies are—
(a) a market contract;
(b) a disposal of property pursuant to a market contract;
(c) the provision of market collateral;
(d) a contract effected by a recognized clearing house for the purpose of realizing property provided as market collateral;
(e) a disposal of property in accordance with the rules of a recognized clearing house as to the application of property provided as market collateral;
(f) a market charge; and
(g) any default proceedings.
(3) In subsection (1)(b), the reference to section 266 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) includes that section as in force immediately before the commencement date of the Companies (Winding Up and Miscellaneous Provisions) (Amendment) Ordinance 2016 (14 of 2016). (Added 14 of 2016 s. 184)

51. Right of relevant office-holder to recover certain amounts arising from certain transactions
(1) Where a clearing participant (the first participant

### Securities and Futures Ordinance 《證券及期貨條例》

52. Application of market collateral not affected by certain other interests, etc.
(1) The provisions of this section have effect with respect to the application by a recognized clearing house of property provided as market collateral.
(2) So far as necessary to enable the property to be applied in accordance with the rules of a recognized clearing house, it may be so applied notwithstanding any prior equitable interest or right, or any right or remedy arising from a breach of fiduciary duty, unless the clearing house had actual notice of the interest, right or breach of duty (as the case may be) at the time the property was provided as market collateral.
(3) No right or remedy arising subsequently to the property being provided as market collateral may be enforced so as to prevent or interfere with the application of the property by the recognized clearing house in accordance with its rules.
(4) Where a recognized clearing house has power by virtue of the provisions of this section to apply property notwithstanding an interest, right or remedy, a person to whom the clearing house disposes of the property in accordance with its rules takes free from that interest, right or remedy.

53. Enforcement of judgments over property subject to market charge, etc.
(1) Where property is subject to a market charge or has been provided as market collateral, no execution or other legal process for the enforcement of a judgment or order may be commenced or continued, and no distress may be levied, against the property by a person not seeking to enforce any interest in or security over the property, except with the consent of the recognized clearing house concerned.
(2) Where by virtue of this section a person would not be entitled to enforce a judgment or order against any property, any injunction or other remedy granted with a view to facilitating the enforcement of any such judgment or order shall not extend to that property.

54. Law of insolvency in other jurisdictions
(1) A court shall not, pursuant to any enactment or rule of law, recognize or give effect to—
(a) an order of a court exercising jurisdiction under the law of insolvency in a place outside Hong Kong; or
(b) an act of a person appointed in that place to perform a function under the law of insolvency there,
in so far as making the order or doing the act would be prohibited in the case of a court in Hong Kong or a relevant office-holder by provisions made by or under this Ordinance.
(2) In this section, law of insolvency (破產清盤法), in relation to a place outside Hong Kong, means any law of that place which is similar to, or serves the same purposes as, any part of the law of insolvency in Hong Kong.