(1)

If a security is discharged, wholly or in part, by ASIC:

(a)

a claim does not lie against the surety in relation to the obligation to which the security relates to the extent that he or she has been released from that obligation; and

(b)

the surety must return to the holder of the licence on whose behalf the security was given:

(i)

the whole; or

(ii)

in the case of a partial discharge — the proportion that ASIC directs;

of any money or other property deposited with or held by the surety to cover the potential liability of the surety under the security.

(2)

If ASIC directs that a security be discharged in part:

(a)

it may state that the surety is not released from the obligations relating to those claims that ASIC specifies; and

(b)

the surety remains subject to any claims that are so specified.