16 Limitation of Insolvency Laws Prohibiting Set-Off

A law that limits the exercise of rights to set off, offset or net obligations, payment amounts or values between an insolvent party and another party has no effect in relation to the provisions of a netting agreement that provide for the determination of, or for payment of or in respect of, the net balance of the close-out values, termination values, market values, liquidation values, replacement values or other relevant values (including the value of any damages which may arise from a party's failure to enter into a transaction required to be entered into under or pursuant to such provisions of the netting agreement) calculated in respect of accelerated and/or terminated payment or delivery obligations or entitlements, or accelerated and/or terminated obligations or entitlements relating to the making of payments or deliveries, in either case under one or more qualified financial instruments entered into thereunder or to which such netting agreement applies (including a payment or delivery in respect of an instrument, agreement or transaction required to be entered into under or pursuant to such provisions).

Derived (as from 19th October 2017).