PAYMENT CLEARING AND SETTLEMENT ACT

ARRANGEMENT OF SECTIONS

PART I
Preliminary

   1   Short title

   2   Interpretation

PART II
Clearing and Settlement System Regulation

   3   Bank to exercise oversight functions

   4   Determination as to existence of clearing and settlement system

   5   Designation of system

   6   Settlement rules to be approved by Bank

   7   Bank to have regard to public interest

   8   Agreements

   9   Bank's directions to clearing house

   10   Bank's directions to participants

   11   Directions to facilitate system stability

   12   Standards

   13   Bank powers

   14   Preservation of settlement rules; rights and remedies for collateral granted

   15   Clearing house to notify of changes and other information

   16   Audits and inspections

   17   Cost of regulation

PART III
Miscellaneous

   18   Other Bank powers

   19   Netting agreements

   20   Judicial review application not to stay directions, etc

   21   Clearing house not in Jamaica

   22   Restriction on disclosure where information not generally available

   23   Establishment of National Payments System Council

   24   Confidentiality

   25   Protection from liability

   26   Enforcement

   27   Offences and penalties

   28   Guidelines

   29   Regulations

   30   Repeal and replacement of section 27 of the Bank of Jamaica Act

 

THE PAYMENT CLEARING AND SETTLEMENT ACT

[Date of Commencement: 31st December, 2010]

Act 32 of 2010.

PART I
Preliminary (sections 1-2)

1    Short title

   This Act may be cited as the Payment Clearing and Settlement Act.

2    Interpretation

   In this Act unless the context otherwise requires-

   "the Bank" means the Bank of Jamaica;

   "central counter-party" means a partnership, agency, association, body corporate or other entity in a payment or securities clearing and settlement system which is interposed between the participants, and which acts as the exclusive counterparty of these entities with regard to their transfer orders;

   "clearing and settlement system" or "system" means a system or arrangement for the clearing or settlement of-

   (a)   payment obligations or payment messages in which-

         (i)   there are at least three participants, at least one of which is the Bank or a bank;

         (ii)   clearing or settlement is in Jamaican currency or other currencies as determined by the Bank; and

         (iii)   the payment obligations that arise from clearing within the system or arrangement are ultimately settled through adjustments to the account or accounts of one or more of the participants at the Bank;

   (b)   securities and derivatives transactions, foreign exchange transactions or other transactions, where the system or arrangement also clears or settles payment obligations arising from those transactions;

   "clearing house" means the entity (whether incorporated or not) that provides clearing or settlement services for a clearing and settlement system, and in relation to any particular system means the body that so services that system;

   "Court" means the Supreme Court;

   "designated system" means a clearing and settlement system designated under section 5(1);

   "functions" includes powers and duties;

   "Governor" means the Governor of the Bank;

   "Minister" means the Minister responsible for finance;

   "National Payments System Council" or "Council" means the body established in accordance with section 23;

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