Article 4 | SFD | Directive 98/26/EC

In force

Initial Legal Act

Amendments (1)

There is currently no Level 2 legal act based on or specifying Article 4.

Article 4 - Directive 98/26/EC (SFD)

Article 4

Member States may provide that the opening of insolvency proceedings against a participant shall not prevent funds or securities available on the settlement account of that participant from being used to fulfil that participant's obligations in the system on the day of the opening of the insolvency proceedings. Furthermore, Member States may also provide that such a participant's credit facility connected to the system be used against available, existing collateral security to fulfil that participant's obligations in the system.

SECTION I - SCOPE AND DEFINITIONS (Article 1-2)

SECTION II - NETTING AND TRANSFER ORDERS (Article 3-5)Article 3 Article 4 Article 5

SECTION III - PROVISIONS CONCERNING INSOLVENCY PROCEEDINGS (Article 6-8)

SECTION IV - INSULATION OF THE RIGHTS OF HOLDERS OF COLLATERAL SECURITY FROM THE EFFECTS OF THE INSOLVENCY OF THE PROVIDER (Article 9)

SECTION V - FINAL PROVISIONS (Article 10-14)