THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 6C - Transfer delivery service guarantees

SECTION 954Z   HOW CLAIM UNDER SUBSECTION 954X(2) IS TO BE SATISFIED  

954Z(1)  [Board to be satisfied]  

Subject to section 954ZC, SEGC must allow a claim under subsection 954X(2) if the Board is satisfied that:

(a)  the claimant is entitled to make the claim; and

(b)  if paragraph 954X(1)(f) applies - the claimant has:

(i) paid to the transferor; or

(ii) for the purposes of the claim, paid to SEGC;

the consideration, under the agreement for the purchase, for the purchase.

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

Subject to subsection (3), if SEGC allows the claim, it must transfer to, or as directed by, the claimant securities of the same kind and number as the default securities.

954Z(3)  [Not reasonably practicable to obtain securities]  

If the Board is satisfied that it is not reasonably practicable for SEGC to obtain securities of the same kind and number as the default securities within the pre-cash settlement period, SEGC must satisfy the claim by paying to the claimant the amount that, as at the time when the Board decides that it is so satisfied, is the actual pecuniary loss suffered by the claimant in respect of the TDS nominee's default.

954Z(4)  [Calculating pecuniary loss]  

In working out the amount of the actual pecuniary loss suffered in respect of the TDS nominee's default, regard may be had to the cost to the claimant of any securities of the same kind as the default securities that the claimant obtained because the TDS nominee failed to transfer the default securities.

954Z(5)  [``pre-cash settlement period'']  

In this section:

``pre-cash settlement period'' means:

(a)  if the business rules of the settlement authority concerned, as in force when the Board allows the claim, prescribe a period, for the purposes of this section, in relation to a class of claims that includes the claim - that period; or

(b)  otherwise - such period as the Board, having regard to all the circumstances of the claim, considers reasonable.