THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 6B - Claims in respect of net obligations

SECTION 954N   CLAIM IN RESPECT OF FAILURE TO PAY NET AMOUNT IN RESPECT OF TRANSACTIONS  

954N(1)  [Set off]  

If:

(a)  under provisions of the business rules of a settlement authority, the total of the amounts that become due and payable to a dealer by a subsidiary of the settlement authority on a particular day in respect of transactions (as defined in the business rules) of a kind or kinds specified in the business rules is set off against the total of the amounts that become due and payable by the dealer to the subsidiary on that day in respect of transactions (as so defined) of that kind or those kinds; and

(b)  depending on which of those totals is the greater, the provisions oblige:

(i) the dealer to pay to the subsidiary, or to some other person or persons nominated under the provisions; or

(ii) the subsidiary, or some other dealer or dealers nominated under the provisions, to pay to the dealer, or to some other person or persons nominated under the provisions;

within a specified period, the difference between those totals; and

(c)  as at the end of that period, that obligation remains undischarged to the extent of a particular amount;

the person to which the amount is payable may, subject to section 954U, make a claim in respect of the obligation.

954N(2)  [Dealer ceasing to be member]  

Entitlement to make the claim is not affected by a dealer ceasing to be a member organisation of a participating exchange after the obligation arose.

954N(3)  [Total may be nil]  

For the purposes of this section, a total may be a nil amount.

954N(4)  [``person'']  

In this section:

``person'' includes a partnership.