Termination clauses in supply contracts Section 14: Protection of supplies of goods and services Section 4ZZA: Protection of Supplies under Section 233B: exclusions
A new Schedule 4ZZA is inserted into to the Insolvency Act 1986. Part 1 specifies exclusions from the restrictions on termination and other clauses that apply under section 233B where a company has entered a relevant insolvency procedure. This includes certain financial services.
	Part 2 of Schedule 4ZZA contains exclusions for certain persons involved in financial services, whether they are the supplier or the customer. They include: insurance companies; banks; electronic money institutions; investment banks and investment firms; and so on.
	Part 3 of Schedule 4ZZA contains exclusions for certain contracts involving financial services to the extent they are considered a contract for the supply of goods and services.
	Part 4 of Schedule 4ZZA makes it clear that nothing in section 233B interferes with existing regulations governing financial markets, nor does it affect any ‘set-off’ or netting arrangements. Set-off arrangements allow two or more debts to be ‘set off’ against each other, whilst under a "netting arrangement" several claims between two parties can be converted into a single net claim.
	Part 4 of Schedule 4ZZA also makes it clear that nothing in Schedule 4ZZA interferes with The International Interests in Aircraft Equipment (Cape Town Convention) Regulations 2015 which provides for special rights and procedures for certain suppliers of aircraft equipment, which include the termination of agreements and repossession of equipment supplied.