§ 22 — Security

22.—(1) Every major payment institution must maintain with the Authority security of a prescribed amount (or its equivalent in a foreign currency), for the due performance of the obligations of the major payment institution to every payment service user who is a customer of the major payment institution.(2) The security mentioned in subsection (1) must be —(a)

in the form of a cash deposit;

(b)

in the form of a bank guarantee that satisfies such requirements as the Authority may specify by written notice; or

(c)

in such other form as the Authority may, in any particular case, allow.

(3) Where a major payment institution has surrendered its licence, or the licence of a major payment institution has lapsed or has been revoked, the Authority may enforce the security mentioned in subsection (1) to the extent required to pay any sums outstanding and claimed by payment service users who are customers of the major payment institution.

(4) To avoid doubt, where the security mentioned in subsection (1) is provided in the form of a bank guarantee, the Authority may call on the bank guarantee for the purposes of subsection (3), even though a closure certificate required under subsection (7) has not been submitted to the Authority.

(5) Where a major payment institution has surrendered its licence, or the licence of a major payment institution has lapsed or has been revoked, the Authority must release the security mentioned in subsection (1), or the remainder of that security, to the major payment institution, upon the Authority —(a)

being satisfied that there is no outstanding claim by any payment service user who is a customer of the major payment institution; and

(b)

receiving the closure certificate required under subsection (7).

(6) Any security provided by a major payment institution under this section —(a)

is not liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatsoever; and

(b)

if the major payment institution is declared insolvent or is wound up by an order of the court — is deemed not to form part of the property of the major payment institution.

(7) A major payment institution must within 45 days, or such longer period as the Authority may allow, after the date on which the licence of the major payment institution is surrendered, lapses or is revoked, submit to the Authority a closure certificate issued by the auditors of the major payment institution confirming that —(a)

all moneys received from payment service users who are customers of the major payment institution have been received by the intended recipients of those moneys; and

(b)

adequate provision has been made to meet any unforeseen liabilities in respect of every business of the major payment institution that its major payment institution licence entitles it to carry on.

—(1) Every major payment institution must maintain with the Authority security of a prescribed amount (or its equivalent in a foreign currency), for the due performance of the obligations of the major payment institution to every payment service user who is a customer of the major payment institution.

(2) The security mentioned in subsection (1) must be —(a)

in the form of a cash deposit;

(b)

in the form of a bank guarantee that satisfies such requirements as the Authority may specify by written notice; or

(c)

in such other form as the Authority may, in any particular case, allow.

(3) Where a major payment institution has surrendered its licence, or the licence of a major payment institution has lapsed or has been revoked, the Authority may enforce the security mentioned in subsection (1) to the extent required to pay any sums outstanding and claimed by payment service users who are customers of the major payment institution.

(4) To avoid doubt, where the security mentioned in subsection (1) is provided in the form of a bank guarantee, the Authority may call on the bank guarantee for the purposes of subsection (3), even though a closure certificate required under subsection (7) has not been submitted to the Authority.

(5) Where a major payment institution has surrendered its licence, or the licence of a major payment institution has lapsed or has been revoked, the Authority must release the security mentioned in subsection (1), or the remainder of that security, to the major payment institution, upon the Authority —(a)

being satisfied that there is no outstanding claim by any payment service user who is a customer of the major payment institution; and

(b)

receiving the closure certificate required under subsection (7).

(6) Any security provided by a major payment institution under this section —(a)

is not liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatsoever; and

(b)

if the major payment institution is declared insolvent or is wound up by an order of the court — is deemed not to form part of the property of the major payment institution.

(7) A major payment institution must within 45 days, or such longer period as the Authority may allow, after the date on which the licence of the major payment institution is surrendered, lapses or is revoked, submit to the Authority a closure certificate issued by the auditors of the major payment institution confirming that —(a)

all moneys received from payment service users who are customers of the major payment institution have been received by the intended recipients of those moneys; and

(b)

adequate provision has been made to meet any unforeseen liabilities in respect of every business of the major payment institution that its major payment institution licence entitles it to carry on.