Document ID: chunk:federal_register_of_legislation:C2004A03415:body:0:p50
Version: federal_register_of_legislation:C2004A03415
Segment Type: other
Provision Reference: 
Character Range: 123622–126229

sale of securities; or
     (b) allows under subsection 122k (2) or 122m (2) a claim made under Division 6 in respect of a purchase of securities;
the Corporation shall be deemed to be subrogated to all the claimant's rights and remedies in relation to the sale or purchase, as the case may be.
"(2) Where the Board allows a claim made under Division 7 in respect of property, the Corporation shall be deemed to be subrogated to all the claimant's rights and remedies in relation to the property.
"(3) Where, by virtue of this section, the Corporation is to be deemed to be subrogated to a right or remedy that a person has against another person, then:
     (a) if the Corporation has reason to believe that an insurer may be liable to indemnify the other person in respect of the subject-matter of the right or remedy—the Corporation shall serve a notice on the insurer setting out particulars of the right or remedy and stating that the Corporation is, by virtue of this section, subrogated to the right or remedy;
     (b) an insurer that considers that it may be liable so to indemnify the other person may, whether or not the Corporation has served a notice on the insurer pursuant to paragraph (a), apply to be joined as a party to a proceeding that relates to the right or remedy and to which the first-mentioned person or the Corporation is a party; and
     (c) the first-mentioned person or the Corporation may, to the extent of the liability of an insurer so to indemnify the other person, enforce against the insurer a judgment or order obtained in such a proceeding in so far as the proceeding relates to the right or remedy.
"(4) Except as provided in this section, nothing in this Part affects a right or remedy that a claimant under Division 6 or 7 has against a person other than the Corporation.

Payment of claims only from Fund
"122zb. Property of the Corporation, other than property forming part of the Fund, is not available to be applied in respect of a claim that has been allowed by the Corporation, whether or not pursuant to an order of the Court.

Corporation may enter into contracts of insurance or indemnity
"122zc. (1) The Corporation may, in its discretion, enter into a contract with a person carrying on fidelity insurance business whereby the Corporation will be insured or indemnified, to the extent and in the manner provided by the contract, against liability in respect of claims.
"(2) A contract entered into under subsection (1) may relate to dealers generally, particular classes of dealers specified in the contract, particular dealers so specified, or dealers