Section 348: Limitation on non-insolvent party’s right to receive payment

348. Limitation on non-insolvent party’s right to receive payment (1) (a) The liability of an insolvent branch or agency of a foreign party or its liquidator in Mauritius under a multi-branch netting agreement shall be calculated as of the date of the termination of the qualified financial contracts entered into under the multi-branch netting agreement in accordance with its terms and shall be limited to the lesser of the global net payment obligation and the branch/agency net payment obligation. (b) The liability under this section of the insolvent branch or agency of the foreign party or its liquidator shall be reduced by any amount otherwise paid to or received by the non-insolvent party in respect of the global net payment obligation pursuant to such multi-branch netting agreement which if added to the liability of the liquidator under this section would exceed the global net payment obligation. (2) The liability of the liquidator of an insolvent branch or agency of a foreign party under a multi-branch netting agreement to the non-insolvent party shall be reduced by the fair market value of, or the amount of any proceeds of, collateral that secures or supports the obligations of the foreign party under the multi-branch netting agreement and has been applied to satisfy the obligations of the foreign party pursuant to the multi-branch netting agreement to the non-insolvent party.