Netting Law DIFC Law No. 2 of 2014

PART 1: GENERAL.........................................................................................................................................................3

1. TITLE......................................................................................................................................................................3

2. LEGISLATIVE AUTHORITY ........................................................................................................................................3

3. DATE OF ENACTMENT...............................................................................................................................................3

4. COMMENCEMENT.....................................................................................................................................................3

5. INTERPRETATION ....................................................................................................................................................3

PART 2: APPLICATION ..................................................................................................................................................4

6. APPLICATION...........................................................................................................................................................4

PART 3: ENFORCEABILITY AND NETTING........................................................................................................................5

7. ENFORCEABILITY OF A QUALIFIED FINANCIAL INSTRUMENT.......................................................................................5

8. GENERAL RULE AS TO ENFORCEABILITY OF A NETTING AGREEMENT..........................................................................5

9. EFFECTIVENESS OF NETTING OF OBLIGATIONS TO MAKE PAYMENTS OR DELIVERIES. ..................................................5

10. LIMITATION ON POWERS OF A LIQUIDATOR .............................................................................................................5

11. LIMITATION OF INSOLVENCY LAWS PROHIBITING SET-OFF.......................................................................................6

12. PREFERENCES AND FRAUDULENT TRANSFERS ......................................................................................................6

13. PREEMPTION ........................................................................................................................................................7

14. REALISATION AND LIQUIDATION OF COLLATERAL.....................................................................................................7

15. SCOPE OF THIS LAW..............................................................................................................................................7

SCHEDULE 1.................................................................................................................................................................9