Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:2:p5
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 2 (pt 5/22)
Character Range: 444765–447691

in subsection (1) the following definition:

     " 'settlement authority' means a participating exchange or the securities clearing house;".

Transfer of securities etc. and payment of money

130. Section 924 of the Corporations Law is amended by omitting subsection (2) and substituting the following subsection:

"(2) A person ('the transferor') transfers securities to another person ('the transferee') if, and only if:

    (a)     in the case of an SCH-regulated transfer—the transferor does, or causes to be done, all things that the SCH business rules require to be done by or on behalf of the transferor to effect the transfer; or

    (b)     in any other case—the transferor delivers, or causes to be delivered, to the transferee documents ('transfer documents') that are sufficient to enable the transferee:

         (i) except in the case of marketable rights within the meaning of Division 3 of Part 7.13—to become registered as the holder of the securities; or

         (ii) in the case of such marketable rights—to obtain the issue to the transferee of the securities to which the marketable rights relate;

   without the transferor doing anything more, or causing anything more to be done, by way of executing or supplying documents.".

Novation of agreements

131. Section 924A of the Corporations Law is amended by omitting "participating exchange's" and substituting "settlement authority's".

Definitions

132. Section 948 of the Corporations Law is amended by inserting the following definition:

" 'Exchange body' means the Exchange or a subsidiary of the Exchange;".

Effect of using a transfer delivery service

133. Section 948A of the Corporations Law is amended by omitting from subparagraph (b)(i) "participating exchange" and substituting "settlement authority".

Claim by selling dealer in respect of default by buying dealer

  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— is 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