Section 16
Obligation to notify operator of designated system of insolvency
of Payment and Settlement Systems (Finality and Netting) Act
(1)
A participant shall notify the operator of a designated system as soon as practicable after the occurrence of any of the following events —
(a)
the making of an order for bankruptcy, judicial management or winding up of the participant;
(b)
the passing of a resolution for the voluntary winding up of the participant.
Payment and Settlement Systems
(Finality and Netting)
(2)
Any participant who contravenes subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding $20,000.
(3)
A participant does not contravene subsection (1) if —
(a)
he took reasonable steps to comply with that subsection; or
(b)
the operator of the designated system was already aware of the relevant event referred to in subsection (1)(a) or (b) by the time the participant was required to notify the operator under that subsection.