Part 1: Part 1: Application, Commencement and Interpretation
Article 1 - Citation
Regulationsmay be referred to as the Security Regulations 2011.
Article 2 - Application
Regulationsare made by the Ministerpursuant to Article 9 of the QFC Lawand shall apply in the QFC. To the fullest extent permitted by the QFC Law, the laws, rules and regulations of the Stateconcerning the giving and taking of security therein shall not apply in the QFC.
Article 3 - Commencement
Regulationsshall come into force on the date of their signature by the Minister.
Article 4 - Language
In accordance with Article 9 of the
QFC Law, these Regulationsare written in the English language and the English text thereof shall be the official original text. Any translation thereof into another language shall not be authoritative and in the event of any discrepancy between the English text of these Regulationsand any other version, the English text shall prevail.
Article 5 - Interpretation
Words and expressions used in these
Regulationsand interpretative provisions applying to these Regulationsare set out in Part 8.
Article 6 - Scope of Regulations(A) a
QFC Person; or(B) a Non-QFC Person.
Article 7 - Excluded Arrangements
Regulationsdo not apply to:(A) liens, charges or other interests arising under any other Regulationsor by operation of QFC Law;(B) rights of set-off;(C) the assignment of a right to payment under a contract to a Personwho is obliged to perform or procure the performance of all or part of the transferor's obligations;(D) the assignment of Accountsor Promissory Notessolely to facilitate collection on behalf of the Personmaking the assignment;(E) the assignment of a single Accountor Promissory Noteto an assignee in full or partial satisfaction of a pre-existing indebtedness;(F) the sale of Accountsor Promissory Notes; or(G) securities and commodities repurchase arrangements.
Article 8 - Territorial Application
Regulationsapply to Security Interestsover:(A) tangible Personal Property, including but not limited to Goods, Instruments, negotiable Documents of Title, Moneyand Chattel Paper, which is located in the QFC;(B) Certificated and Uncertificated Securitiesissued by QFC Persons;(C) Security Entitlementsor Security Accountsmaintained by Security Intermediarieswhich are QFC Persons;(D) Commodity Contractsor Commodity Accountsmaintained by Commodity Intermediarieswhich are QFC Persons;(E) Electronic Chattel Paperof which the authoritative copy is stored in the QFC;(F) Bank Accountsmaintained with Bankswhich are QFC Persons; and(G) Letter of credit rights where the issuer or Nominated Personis a QFC Person.