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Article 115

Date(g): 13/6/2023 | Date(h): 25/11/1444 Status: In-Force

Translated Document

Effective from Jun 13 2023 - Jun 11 2023
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 1.A significant payment system shall establish, within its operating rules, rules and procedures to enable settlement finality to be completed, not later than the end of the specified settlement time and date.
 2.The relevant rules and procedures shall include verification of settlement finality for all cases whereby final payment orders are executed through the significant payment system.
 3.Without prejudice to the provisions stipulated in Article 6 of the Law, the results of all transfers of funds, final settlement of the final payment order, settlement operations, clearing arrangements, default management arrangements and guarantee arrangements shall be irrevocable and may not be reversed, repaid, overridden or avoided, and their application shall not conflict with the application of the procedures specified in Paragraph [6] of this Article.
 4.

The operating rules for a significant payment system shall clarify the necessary provisions and procedures for all operations and functions, in accordance with the provisions set forth in Articles 6, 9 and 10 of the Law, including, but is not limited to:

A.Payment orders;
B.Settlement procedures;
C.Arrangements relating to protection;
D.Clearing arrangements;
E.Guarantees; and
F.Default management arrangements.
 5.SAMA may request any documents or reports proving compliance of the operating rules with all provisions referred to in this Article as it deems appropriate.
 6.

The operating rules of a significant payment system shall clearly and explicitly stipulate all provisions in relation to Articles 6, 9 and 10 of the Law, taking into account the following:

A.The operating rules shall not conflict with the requirements for protection, validity and binding of the final payment order, collateral arrangements and clearing arrangements.
B.The operating rules shall not conflict with bankruptcy proceedings, processing procedures, voluntary and involuntary winding-up and liquidation procedures and procedures resulting from making special administrative decisions, or the like, which are subject to the laws and regulations in relation to payment systems or their members, which may result in suspension or imposition of restrictions on the execution or completion of payment transactions resulting from payment orders.
 7.The provisions of Article 6 of the Law shall not apply to final payment orders created at the end of the calendar day in the Kingdom, in which the “procedures” give rise to an order or directive - published and notified as required and executed in the regular manner - by the competent authority for the cessation of business, termination, bankruptcy or restructuring of the relevant significant payment system or its members or the expiration of the day on which the voluntary termination procedures are completed.
 8.SAMA may exempt the significant payment system from certain provisions of this Article, provided that the exception decision is applied starting from the day following the day on which the decision was issued, and the decision shall be published depending on the means determined by the Central Bank.
 9. SAMA may apply all or any of the provisions contained in this Article to the operating rules of the unclassified payment system.