If:

(a)

under a guaranteed securities loan, or under a replacement agreement in relation to a guaranteed securities loan that has been novated, a person or partnership is obliged to transfer securities of a particular kind to, or as directed by, another person or partnership; and

(b)

for the purpose of wholly or partly discharging the obligation, the first-mentioned person or partnership:

(i)

elects, in accordance with the transfer delivery service provisions of a settlement authority, to bring about a transfer of a particular number of securities of that kind to, or as directed by, the other person or partnership by the means provided for in those provisions; and

(ii)

for the purpose of so bringing about that transfer, transfers that number of securities of that kind to the TDS nominee;