before dealer became insolvent (1) Subject to this Division, where:
- (a)
- a
dealer has at a particular time, whether before or after the commencement of
this Part, become insolvent; and
- (b)
- at an earlier time (whether before or after that commencement), property
was, in the course of, or in connection with, the dealer's business of dealing
in securities, entrusted to, or received by:
- (i)
- if the dealer was, at the earlier time, a partner in a member
organisation—the member organisation, or a partner in, or an employee of,
the member organisation; or
- (ii)
- otherwise—the dealer or an employee of the dealer;
and was so entrusted or received on behalf of, or because the dealer was a
trustee of the property for, a person (other than an excluded person in
relation to the dealer); and
- (c)
- as at the first-mentioned time, the obligations of the dealer, or of a
member organisation in which the dealer is a partner, as the case requires, to
the person in respect of the property have not been discharged;
the person may make a claim in respect of the property.
(2) Where a person makes a claim in respect of property and, at a particular
time, the Board is satisfied that:
- (a)
- because of a dealer having become
insolvent, this Division entitles the claimant to make the claim; and
- (b)
- as at that time, the obligations of the dealer, or of a member
organisation in which the dealer is a partner, as the case requires, to the
claimant in respect of the property have not been discharged;
SEGC must allow the claim and:
- (c)
- if the property is, or includes, money—pay to the claimant an amount
equal to the amount of that money; and
- (d)
- if the property is, or includes, property other than money—subject to
subsection (3) and section 964, supply the last-mentioned property
to the claimant.
(3) Where:
- (a)
- SEGC allows a claim that, because of a dealer having become
insolvent, this Division entitles a person to make in respect of property that
is, or includes, a number of securities of a particular kind or documents of
title to a number of securities of a particular kind; and
- (b)
- it is not reasonably practicable for SEGC to obtain those securities, or
those documents of title to securities, as the case may be, from the dealer
or, if the dealer has disposed of them, from the dealer's successor in title,
before the end of:
- (i)
- if the business rules of a participating exchange of which the dealer is a
member, being those business rules as in force when the Board allows the
claim, prescribe a period, for the purposes of this section, in relation to a
class of claims that includes that claim—that period; or
- (ii)
- otherwise—such period as the Board, having regard to all the
circumstances relating to the claim, considers reasonable;
SEGC must, subject to section 964, supply to the person, instead of those
securities, or those documents of title to securities, that number of
securities of that kind, or documents of title to that number of securities of
that kind, as the case may be.
Commonwealth Numbered Acts