1) All transactions conducted through a Financial Infrastructure System, which meets one of the designation conditions referred to in item (2) of Article (126) of this decretal law shall be final, irrevocable and irreversible, in any of the following cases:

• a. Transfer of funds from or to the account of a Participant Person.
• b. Settlement of a payment obligation.
• c. Settlement of an obligation to transfer, or the actual transfer of book- entry securities.

2) No transfer or settlement pertaining to the transactions referred to in item (1) of this article shall be cancelled, set aside, re-paid, or reversed, nor shall it be rectified, whether by a court judgement order, or by law

1) None of the following operations and procedures carried out through Financial Infrastructure Systems, which meet one of designation conditions referred to in item (2) of Article (126) of this decretal law, shall be regarded, as to any extent, invalid on the grounds of commencement of realization of assets of a Person under liquidation, insolvency, financial restructuring, or bankruptcy:

• a. A Transfer Order.
• b. Any disposition of property in pursuance of such Transfer Order.
• c. The Default Arrangements of such systems.
• d. The rules of such systems as to the settlement of Transfer Orders not dealt with under their Default Arrangements.
• e. Any arrangements for the purpose of realizing collateral security in connection with participation in such systems, other than its Default Arrangements.

2) The relevant insolvency officer or any Person appointed to manage the insolvency procedures in cases of bankruptcy or liquidation, shall not take any actions or procedures contrary to the provisions of this decretal law, or preclude or interfere with Default Arrangements of systems referred to in item (1) of this article.

3) An obligation arising out of a Transfer Order, which is the subject of an action taken under Default Arrangements of systems referred to in item (1) of this article, shall not be proved in a bankruptcy or liquidation procedures, until completion of the transfer or payment order.

4) A debt or other liability, which by virtue of item (3) of this article may not be proved, shall not be taken into account for the purposes of any set-off, offset, or net out of debt or obligations until the completion of the action taken under the Default Arrangements of such systems.

1) The operator of a Financial Infrastructure System, which meets any of the designation conditions referred to in item (2) of Article (126), may effect Netting of all obligations owed to or by a Participant Person in this System, which incurred before the point of time where the competent court has made an order for bankruptcy or liquidation of the concerned Participant Person.

2) In case Netting has been effected as provided in item (1) of this article, then:

a. The obligations that are netted shall be disregarded in the bankruptcy or liquidation proceedings and

b. Any net obligation owed to or by the Participant Person that has not been discharged is payable to the Participant Person and may be recovered for the benefit of his creditors or is provable in the bankruptcy or liquidation, as the case may be.

3) Netting operations processed by the concerned system’s operator in accordance with item (1) of this article shall not be cancelled during a bankruptcy or liquidation process, nor any financial transfers already paid in accordance with paragraph (a) of item (2) of this article.

1) Except to the extent that it expressly provides, this decretal law shall not operate to limit, restrict or otherwise affect:

a. Any right, title, interest, privilege, obligation or liability of a Person resulting from the underlying transaction in respect of a Transfer Order that has been entered into a Financial Infrastructure System, which meets any of the designation conditions referred to in item (2) of Article (126).

b. Any investigation, legal proceedings or remedy in respect of any such right, title, interest, privilege, obligation or liability.

2) Nothing in item (1) of this article shall be construed to require:

a. The unwinding of any Netting done by the operator of the concerned system, whether pursuant to its Default Arrangements or otherwise;

b. The revocation of any Transfer Order given by a Participant Person which is entered into the concerned system; or

c. The reversal of a payment or settlement made under the operating rules of the concerned system.

1) A Participant Person in a Financial Infrastructure System, which meets any of the designation conditions referred to in item (2) of Article (126) shall notify the operator of the system or its Settlement Institution, the concerned regulatory authority, and the Central Bank, as soon as practicable if there comes to his knowledge any of the following events occurring in the State or in other jurisdictions:

a. Presentation of a plea for declaration of his bankruptcy or liquidation;

b. Issuance of a judgement for declaration of his bankruptcy or liquidation; or

c. The making of owners, shareholders, or management of a Participant Person voluntary winding up statement in his respect.

2) A Participant Person failing to notify of a relevant event referred to in item (1) of this article within the required timeframe is not in contravention if:

a. He took reasonable steps to comply with the provisions of item (1) of this article or

b. The agencies referred to in item (1) of this article were already aware of the relevant event by the time the Participant Person was required to notify the operator under the provisions of this article.