Commonwealth Repealed Acts
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This legislation has been repealed.
CORPORATIONS LAW
- SECT 952
Claim by buying client in respect of default by buying
dealer
- (1)
- Where, as at the end of
the prescribed period in relation to a reportable transaction that is a
purchase by a dealer on behalf of a person:
- (a)
- the person:
- (i)
- in a case
to which subparagraph (ii) does not applyhas paid to the dealer the
purchase price in relation to the purchase;
or
- (ii)
- if the dealer has been
suspended by the participating exchange concerned, or the dealer's status as
an SCH participant has been suspended under the SCH business rules, and that
suspension has not been removedhas paid, or is ready, willing and able
to pay, to the dealer the purchase price in relation to the purchase; and
- (aa)
- if a transfer of the
securities concerned pursuant to the purchase would be an SCH-regulated
transferthe dealer's obligations to the person in respect of the
purchase, in so far as they relate to the transfer of securities to the
person, have not been discharged;
and
- (b)
- if paragraph (aa) does not
applythe dealer's obligations to the person in respect of the purchase,
in so far as they relate to settlement documents in relation to the purchase,
have not been discharged;
the person may make a claim in respect of the purchase.
- (2)
- Where a person is entitled
to make claims under subsection (1) in respect of 2 or more purchases by the
one dealer, the person may make a single claim in respect of 2 or more of
those purchases but a claim so made shall be treated for the purposes of
subsection (3) as if it consisted of a separate claim in respect of each of
those purchases.
- (3)
- Where a person makes a
claim in respect of a purchase of securities by a dealer on behalf of the
claimant and the Board is satisfied that:
- (a)
- subsection
(1) entitles the claimant to make the claim;
and
- (b)
- the claimant has:
- (i)
- under the
agreement for the purchase, paid to the dealer;
or
- (ii)
- for the purposes of the
claim, paid to SEGC;
the amount of the consideration for the purchase;
and
- (ba)
- if a transfer of the
securities pursuant to the purchase would be an SCH-regulated
transferthe dealer's obligations to the claimant in respect of the
purchase, in so far as they relate to the transfer of securities to the
claimant, have not been discharged;
and
- (c)
- if paragraph (ba) does not
applythe dealer's obligations to the claimant in respect of the
purchase, in so far as they relate to settlement documents in relation to the
purchase, have not been discharged;
SEGC shall allow the claim.
- (4)
- If:
- (a)
- SEGC allows
under subsection (3) a claim in respect of a purchase of securities by a
dealer on behalf of a person;
and
- (b)
- a transfer of the
securities pursuant to the purchase would be an SCH-regulated transfer;
SEGC must, subject to section 952A, transfer to the claimant securities of the
same kind and number as the first-mentioned securities.
- (5)
- If:
- (a)
- SEGC allows
under subsection (3) a claim in respect of a purchase of securities by a
dealer on behalf of a person;
and
- (b)
- subsection (4) does not
apply;
SEGC must, subject to section 953, supply to the claimant settlement documents
in relation to the purchase.
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