Article (108) Close-Out Netting Due to Market Contract

(a) The Central Bank shall issue regulations regarding conditions and controls to be incorporated in a Market Contract as well as the procedures for carrying out clearance according to such contract.
(b) Notwithstanding the provisions of any other law relating to clearance, bankruptcy or insolvency, any Close-out Netting shall be carried out according to the Market Contract in connection with debts, loans and dealings between the parties thereof that were originated or completed before any of the parties became insolvent or bankrupt.. The same shall apply against the parties of the contract their receivers in bankruptcy and their creditors.
(c) The previous paragraph shall not apply if one party knew or ought to have known that:
1. an application, for the liquidation and winding up of the other party by reason of insolvency, is being considered by the concerned authority.
2. the other party has taken formal steps under any other applicable law to liquidate or wind up by reason of bankruptcy.