THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 6B - Claims in respect of net obligations

SECTION 954T   HOW CLAIM UNDER SUBSECTION 954P(3) IS TO BE SATISFIED  

954T(1)  [Board to be satisfied]  

Subject to section 954V, SEGC must allow a claim by a settlement authority under subsection 954P(3) if the Board is satisfied that:

(a)  the settlement authority is entitled to make the claim; and

(b)  the settlement authority has paid or transferred to SEGC any money or property it has obtained because of the right of subrogation given by paragraph 954P(3)(a) in relation to the failure to transfer the default securities.

954T(2)  [How claim to be satisfied]  

If SEGC allows the claim, it must pay to the settlement authority the amount that, as at the time when the claim is allowed, is the actual pecuniary loss suffered by the settlement authority because of the actions it has taken to remedy its subsidiary's default.

954T(3)  [Calculating pecuniary loss]  

In working out the amount of the actual pecuniary loss suffered in respect of the actions taken by the settlement authority to remedy its subsidiary's default, regard may be had to the cost to the settlement authority of obtaining the securities transferred as mentioned in subsection 954P(3).

954T(4)  [Money or property part of Fund]  

Money or property paid or transferred to SEGC under paragraph (1)(b) forms part of the Fund.