§ 261 Clause 146, leave out Clause 146 and insert —
§ 'Application of margin not affected by certain other interests
§ '. —(1) The following provisions have effect with respect to the application by a recognised investment exchange or recognised clearing house of property (other than land) held by the exchange or clearing house as margin in relation to a market contract.
§ (2) So far as necessary to enable the property to be applied in accordance with the rules of the exchange or clearing house, it may be so applied notwithstanding any prior equitable interest or right, or any right or remedy arising from a breach of fiduciary duty, unless the exchange or clearing house had notice of the interest, right or breach of duty at the time the property was provided as margin.
§ (3) No right or remedy arising subsequently to the property being provided as margin may be enforced so as to prevent or interfere with the application of the property by the exchange or clearing house in accordance with its rules.
§ (4) Where an exchange or clearing house has power by virtue of the above provisions to apply property notwithstanding an interest, right or remedy, a person to whom the exchange or clearing house disposes of the property in accordance with its rules takes free from that interest, right or remedy.'.
§ Priority of floating market charge over subsequent charges
§ . —(1) The Secretary of State may by regulations provide that a market charge which is a floating charge has priority over a charge subsequently created or arising, including a fixed charge.
§ (2) The regulations may make different provision for cases defined, as regards the market charge or the subsequent charge, by reference to the description of charge, its terms, the circumstances in which it is created or arises, the nature of the charge, the person in favour of whom it is granted or arises or any other relevant factor.'.
§ Lord TrefgarneMy Lords, I beg to move that the House do agree with the Commons in their Amendment No. 261. I am anxious to avoid the difficulty that we got into earlier. Therefore may I just move the amendment and sit down, and perhaps the noble Lord would then like to move his amendment.
§ Moved, That the House do agree with the Commons in the said amendment. —(Lord Trefgarne.)