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VOLUME: X
NATIONAL CLEARANCE AND SETTLEMENT SYSTEMS
CHAPTER: 46:06
Part:III Finality of Settlements Within Recognised System in the Central Bank System (ss 10-11)

 

10.     Finality of payments and transfers made within settlement systems

 

            (1) Notwithstanding any other law but subject to this section, a payment or transfer which is effected in accordance with a recognised system or the Central Bank system and which is intended to settle-

     (a)     the payment obligations or settlement obligations of a participant in the system pursuant to a payment or settlement instruction, as the case may be; or

     (b)     what are believed by the person making the payment or transfer to be the payment obligations or settlement obligations of a participant in the system,

shall be final and irrevocable and shall not be reversed or set aside for any reason:

            Provided that, if it subsequently appears that any amount or property so paid or transferred was not in fact due, it shall constitute a fresh debt owed by the payee or transferee, as the case may be, to the person who made the payment or transfer.

            (2) If the Central Bank considers that the making of a payment or transfer referred to in subsection (1) is likely to result in systemic risk, the Central Bank may, by written notice to the participants concerned-

     (a)     prohibit the making of the payment or transfer, if it has not already been made; or

     (b)     set aside the payment or transfer, if it has already been made,

and shall forthwith provide the participants with a written statement of its reasons for doing so:

            Provided that no such payment or transfer shall be set aside more than twenty-four hours after it has been made.

            (3) Where the Central Bank has prohibited the making of a payment or transfer in terms of paragraph (a) of subsection (2), any transaction effected in contravention of the prohibition shall be void.

            (4) Where the Central Bank has set aside a payment or transfer in terms of paragraph (b) of subsection (2), the payment or transfer concerned shall be void ab initio.

 

11.     Payments and transfers within settlement system not subject to interdict or stay

 

            Notwithstanding any other law no interdict or other order of any court shall operate to stay any payment or transfer which is required to be made in accordance with a recognised system or the Central Bank system and which is intended to settle-

     (a)     the payment obligations or settlement obligations of a participant in the system; or

     (b)     what are believed, by the person who is required to make the payment or transfer, to be the payment obligations or settlement obligations of a participant in the system.