Commonwealth Numbered Acts

CORPORATE LAW REFORM ACT 1992 No. 210 of 1992 - SECT 134

134. Section 949 of the Corporations Law is amended:

   (a)  by omitting paragraph (1)(a) and substituting the following paragraph:

"(a) the first-mentioned dealer:

        (i)    if a transfer of the securities concerned pursuant to the sale
               would be an SCH-regulated transfer - has done, or is ready,
               willing and able to do, all things that that dealer is required
               to do under the SCH business rules to effect a transfer of the
               securities pursuant to the sale; or

        (ii)   in any other case - has supplied, or is ready, willing and able
               to supply, to the other dealer, under the agreement for the
               sale, settlement documents in relation to the sale; and";

   (b)  by inserting after subsection (4) the following subsections:

"(4A) If the SCH business rules purport to authorise the securities clearing
house to make under this section on behalf of a dealer who is or was an SCH
participant a claim that the dealer is entitled to make, the securities
clearing house is entitled to make that claim on behalf of that dealer.

"(4B) If the securities clearing house is entitled under subsection (4A) to
make claims under this section on behalf of 2 or more dealers, the securities
clearing house is entitled to make a single claim under this section on behalf
of both or all of those dealers in respect of the sum of the amounts in
respect of which it is entitled to make separate claims on behalf of each of
those dealers.";
(c) by inserting in subsection (5) "or the securities clearing house" after
"body";

   (d)  by omitting from paragraph (5)(a) "or (3)" and substituting ", (3) or
        (4A)";

   (e)  by inserting after paragraph (5)(a) the following word and paragraph:

"and (aa) if a transfer of the securities pursuant to the sale would be an
SCH-regulated transfer - the dealer:

        (i)    has done all things that the dealer is required to do under the
               SCH business rules to effect a transfer of the securities
               pursuant to the sale; or

        (ii)   has, for the purposes of the claim, in accordance with the SCH
               business rules, transferred to SEGC or to an Exchange body
               securities of the same kind and number as the first-mentioned
               securities; and";
(f) by inserting in paragraph (5)(b) "if paragraph (aa) does not apply - "
before "the dealer";

   (g)  by adding at the end of paragraph (5)(b) "and";

   (h)  by omitting from subsection (6) "or (4)" and substituting ", (4) or
        (4B)";

        (i)    by omitting subsection (7) and substituting the following
               subsection:

"(7) If a dealer transfers securities to an Exchange body as mentioned in
subparagraph (5)(aa)(ii), the Exchange body must account to SEGC for those
securities in accordance with the SCH business rules.".