THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.13 - TITLE TO, AND TRANSFER OF, SECURITIES

Division 3 - Transfer of marketable securities and marketable rights

Subdivision C - SCH-regulated transfers

SECTION 1109J   SECURITIES CLEARING HOUSE ENTITLED TO ASSUME ITS BUSINESS RULES COMPLIED WITH  

1109J(1)  [Allowable assumptions]  

The securities clearing house is entitled to assume without inquiry, in the absence of knowledge to the contrary, that anything purporting to be done under the SCH business rules in connection with a transfer of a quoted security or quoted right has been done in accordance with those rules.

1109J(2)  [Effect of assumption]  

If, in reliance on subsection (1), the securities clearing house assumes that a thing was done in accordance with the SCH business rules then, for the purposes of this Law (including the definition of ``proper SCH transfer'' in section 9), the thing is taken to have been done in accordance with those rules.

1109J(3)  [Assumption extends to issuing body]  

If the securities clearing house is acting on behalf of the issuing body in relation to quoted securities or quoted rights when, in reliance on subsection (1), it assumes that a thing was done in accordance with the SCH business rules, then the issuing body is also taken to assume, and to be entitled to assume, that the thing was so done.