THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.8 - DEPOSITS WITH STOCK EXCHANGES

SECTION 889   DEPOSITS TO BE LODGED BY MEMBER ORGANISATIONS  

889(1)  (Application of section)  

This section applies where a licensee is, or is a partner in a partnership that is, a member organisation of a stock exchange.

889(2)  (Deposit to be lodged)  

Subject to this section, the licensee or partnership, as the case may be, shall, as provided in this section, lodge and keep a deposit with:

(a)  if the licensee or partnership is a member organisation of each of 2 or more stock exchanges - the nominated stock exchange; or

(b)  otherwise - the stock exchange referred to in subsection (1).

889(3)  (Change in membership)  

If:

(a)  while the licensee or partnership, as the case may be, is a member organisation of at least one stock exchange, he, she or it becomes a member organisation of another stock exchange; or

(b)  the licensee or partnership ceases to be a member organisation of a particular stock exchange but remains a member organisation of each of 2 or more other stock exchanges;

the licensee or partnership shall as soon as practicable inform in writing each stock exchange of which he, she or it is a member organisation of the name of the stock exchange with which he, she or it proposes to lodge and keep a deposit.

889(4)  (Meaning of ``nominated stock exchange'')  

In subsection (2):

``nominated stock exchange'' means the stock exchange named in notices given as required by subsection (3) or, if notices have been so given on 2 or more occasions, in the most recent notices so given.

889(5)  [Deposit payable out of trust account]  

The deposit is payable out of money in a trust account of the licensee or partnership, as the case may be.

889(6)  [Deposit still part of trust account]  

An amount paid from such a trust account as, or as part of, the deposit continues to be money in the trust account even though it has been lodged with a stock exchange.

889(7)  [When failure to lodge and keep deposit disregarded]  

A contravention of subsection (2) shall be disregarded if it was attributable to the making, out of a trust account of the licensee or partnership, as the case may be, of a payment that:

(a)  paragraph 869(1)(a), (c), (d) or (e) authorised the licensee or partnership to make out of that trust account; and

(b)  the licensee or partnership was unable to make without committing the contravention.