(1) The general law of insolvency has effect in relation to -

(a) transfer orders effected through a designated system and action taken under the rules of a designated system with respect to such orders; and

(b) collateral security,

subject to the provisions of this Part.

(2) Those provisions apply in relation to -

(a) insolvency proceedings in respect of a participant in a designated system, or of a participant in a system which is an interoperable system in relation to that designated system;

(b) insolvency proceedings in respect of a provider of collateral security, in so far as the proceedings affect the rights of the collateral-taker; and

(c) insolvency proceedings in respect of a system operator of a designated system or of a system which is an interoperable system in relation to that designated system;