Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation applies if a transfer document relating to Division 3 assets or Division 3 rights:
(a) is a duly completed Part 1; and
(b) bears a stamp that purports to be a stamp of the transferor's broker (the designated broker ).
(2) Each associate (if any) of the designated broker is taken to have warranted:
(a) that the statements in the transfer document that purport to be certified by the designated broker are accurate; and
(b) that the transferor is:
(i) the registered holder of, or entitled to be registered as the holder of, the Division 3 assets; or
(ii) is entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the Division 3 assets or Division 3 rights.
(3) If the designated broker is not a broker's agent, the designated broker is taken to have warranted:
(a) that the statements in the transfer document that purport to be certified by the designated broker are accurate; and
(b) that the transferor is:
(i) the registered holder of, or entitled to be registered as the holder of, the Division 3 assets; or
(ii) is entitled to the Division 3 rights;
and is legally entitled or authorised to sell or dispose of the Division 3 assets or Division 3 rights.
(4) The following additional arrangements apply if the transfer document has been duly completed in accordance with Part 1 of Form 1 or Form 5:
(a) if, when the transfer document was stamped with the stamp mentioned in paragraph (1)(b), the designated broker had authority to sell the Division 3 assets or Division 3 rights, on the transferor's behalf, to:
(i) the transferee; or
(ii) particular persons who include, or particular classes of persons at least one of which includes, the transferee; or
(iii) any person at all;
the designated broker is taken to have been authorised to execute, and to have executed, the transfer document on the transferor's behalf;
(b) each associate (if any) of the designated broker is liable to indemnify:
(i) the issuer in relation to the Division 3 assets or Division 3 rights; and
(ii) the transferor; and
(iii) the transferee; and
(iv) the transferee's broker;
against any loss or damage arising if:
(v) the stamp mentioned in paragraph (1)(b) is not the designated broker's stamp; or
(vi) apart from paragraph (a), the designated broker was not authorised to execute the transfer document on the transferor's behalf;
(c) if the designated broker is not a broker's agent, the designated broker is liable to indemnify:
(i) the issuer in relation to the Division 3 assets or Division 3 rights; and
(ii) the transferor; and
(iii) the transferee; and
(iv) the transferee's broker;
against any loss or damage arising if:
(v) the stamp mentioned in paragraph (1)(b) is not the designated broker's stamp; or
(vi) apart from paragraph (a), the designated broker was not authorised to execute the transfer document on the transferor's behalf.