Section 54: Netting.

(1) Notwithstanding the provisions of this Act or anything to the contrary in the Companies and Allied Matters Act, any other law, subsidiary legislation, rule, procedure or practice, where the licence of a bank or other financial institution is revoked pursuant to the provisions of this Act or is wound up by an order of a Court of competent jurisdiction, or a liquidator is appointed for the bank or other financial institution, any provision contained in a written netting agreement to which the bank or other financial institution is a party, or any netting rule or practice applicable to the bank or other financial institution, is binding upon the liquidator in respect of-
(CAMA, Act No. 3. 2020.)
(a) any payment or settlement instruction which has been delivered to another bank or other financial institution, a service provider or to the Bank prior to the revocation, winding up order, or appointment of the liquidator and which instruction-
(i) is subject to calculation and determination through clearing or netting, or
(ii) may result in a payment or settlement obligation, which obligation is to be discharged on, or after, the date of the revocation, the winding up order, appointment of the liquidator, or the discharge of which was overdue on the date of the winding up order, or appointment of the liquidator, as the case may be; or
(b) any payment or settlement obligation-
(i) which has been determined through netting prior to the revocation, the issue of the winding up order or appointment of the liquidator, or
(ii) which is to be discharged on, or after, the date of the revocation, the winding up order, appointment of the liquidator, or the discharge of which was overdue on the date of the winding up order or appointment of the liquidator.
(2) Notwithstanding anything to the contrary in the Companies and Allied Matters Act, any other law, subsidiary legislation, rule, procedure or practice, any asset of a bank or other financial institution which the bank or other financial institution, prior to the revocation or issue of its winding up order, has provided-
(a) to the Bank or any other bank, other financial institution or any person as security for a loan in respect of its settlement obligation, may be utilised by the Bank to the extent required for the discharge of that settlement obligation; or
(b) under the terms of a written agreement with a service provider, to the service provider as security in respect of its payment obligation, may be utilised by the service provider to the extent required for the discharge of that payment obligation.