(1) The following provisions apply with respect to any sum which is owed on completion of action taken under default arrangements of a designated system by or to a defaulter but do not apply to any sum which (or to the extent that it) arises from a transfer order which is also a market contract within the meaning of Part VII or Part V, in which case sections 162 and 163 of the Companies Act 1989 [1989 c. 40.] or Articles 85 and 86 of the Companies (No. 2) (Northern Ireland) Order 1990 apply subject to the modification made by regulation 21.

(2) If, in England and Wales or Northern Ireland, a bankruptcy, winding up or administration order has been made or a creditors’ voluntary winding-up resolution has been passed, the debt -

(a) is provable in the bankruptcy or winding up or, as the case may be, is payable to the relevant office-holder; and

(b) shall be taken into account, where appropriate, under section 323 of the Insolvency Act 1986 or Article 296 of the Insolvency (Northern Ireland) Order 1989 or rule 14.24 of the Insolvency (England and Wales) Rules 2016 or Rule 2.086 of the Insolvency Rules (Northern Ireland) 1991 [S.R 1991 No. 364. Rule 2.086 was substituted by S.R. 2006 No. 47.] (mutual dealings and set-off) or the corresponding provision applicable in the case of winding up;