THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 5 - Securities industry development accounts

SECTION 944   PAYMENTS WHERE FUND EXCEEDS MINIMUM AMOUNT  

944(1)  (Payments where Fund exceeds minimum)  

Where the amount in the Fund exceeds the minimum amount, the Board may, in its discretion, determine in writing that a specified amount equal to the whole or a part of the excess be paid out of the Fund:

(a)  if the Exchange is the only participating exchange - to the Exchange; or

(b)  if there are 2 or more participating exchanges;

(i) to a specified participating exchange; or

(ii) to 2 or more specified participating exchanges in specified proportions.

944(2)  (Two or more exchanges)  

Where there are 2 or more participating exchanges, a determination under subsection (1) shall be fair and equitable having regard, in relation to each participating exchange, to:

(a)  the amounts that have been paid into the Fund and that are attributable to, or to members or member organisations of, that participating exchange; and

(b)  the amounts that have been paid out of the Fund and that are so attributable.

944(3)  (Payment)  

Where a determination is made in accordance with this section, the amount specified in the determination shall be paid out of the Fund in accordance with the determination.

944(4)  (Fidelity funds)  

For the purposes of subsection (2), where:

(a)  money in the fidelity fund of a securities exchange has been paid into the Fund under subsection 985(1); or

(b)  property of the fidelity fund of a securities exchange (other than money in that fidelity fund) has vested in SEGC, and become part of the Fund, by virtue of subsection 985(2);

the amount of that money shall be taken, or an amount equal to the value of that property shall be deemed, as the case may be, to have been paid into the Fund and to be attributable to:

(c)  in the case of an Exchange subsidiary - the Exchange; or

(d)  otherwise - that securities exchange.

944(5)  [Transferred claims]  

For the purposes of subsection (2), where an amount is paid out of the Fund in connection with a claim that is, for the purposes of Division 10, a transferred claim in relation to a securities exchange, the amount shall be taken to be attributable to:

(a)  in the case of an Exchange subsidiary - the Exchange; or

(b)  otherwise - that securities exchange.