Document ID: chunk:federal_register_of_legislation:C2024C00719:section:27
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 27
Character Range: 100755–103305

27  Control of investment instruments

Main rule
 (1) A person has control of an investment instrument if, and only if, this section so provides.

Control of any investment instrument
 (2) A person, other than the debtor or grantor, has control of an investment instrument (whether or not the instrument is evidenced by a certificate) if the issuer of the instrument registers the person as the registered owner of the instrument.

Control of investment instruments evidenced by certificates
 (3) A person (the controller) has control of an investment instrument that is evidenced by a certificate if:
 (a) the controller has possession of the instrument; and
 (b) the controller (or a person who has agreed to act on the instructions of the controller) is able to:
 (i) transfer the instrument to the controller, or to another person; or
 (ii) otherwise deal with the instrument.

Control of investment instruments not evidenced by certificates
 (4) A person has control of an investment instrument that is not evidenced by a certificate if:
 (a) there is an agreement in force between the person and the grantor; and
 (b) the agreement has the effect that the person (or a person who has agreed to act on the instructions of the first person) is able to initiate or control sending instructions by which the investment instrument could be transferred or otherwise dealt with.
 (5) A person (the controller) has control of an investment instrument that is not evidenced by a certificate if:
 (a) either:
 (i) the issuer of the instrument registers another person (who is not the grantor or debtor) as the registered owner of the investment instrument on behalf of the controller; or
 (ii) the registered owner (who is not the grantor or debtor) of the investment instrument acknowledges in writing that he, she or it holds the investment instrument on behalf of the controller; and
 (b) there is an agreement in force under which the controller (or a person who has agreed to act on the instructions of the controller) is able to initiate or control the sending of some or all electronic messages or other electronic communications by which the investment instrument could be transferred or otherwise dealt with.
 (6) For the purposes of this section, a person has control of an investment instrument even if the registered owner of the investment instrument (who might be the grantor) retains the right:
 (a) to make substitutions for the instrument; or
 (b) to originate instructions to the issuer; or
 (c) to otherwise deal with the instrument.