Bankruptcy Law

1. The initiation of a liquidation procedure, small debtors' liquidation procedure, or administrative liquidation procedure shall result in an automatic set-off procedure for any outstanding debts owed by the creditor to the debtor on the initiation date, in consideration of any debts owed by the debtor to the creditor. 2. Paragraph (1) of this Article shall apply to reciprocal debts and any other reciprocal transaction between the debtor and his creditor in any existing transaction or debt listed as part of the bankruptcy debts. Debts or transactions shall be deemed reciprocal if carried out by the same parties having the same capacity and rights vis-a-vis said debts or transactions. 3. Notwithstanding paragraph (2) of this Article, regulated entities engaged in financial activities may conduct multilateral set-off transactions among themselves, as specified in the Regulations.