THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 9 - General provisions relating to claims

SECTION 980   SUBROGATION OF SEGC TO CLAIMANT'S RIGHTS ETC.  

980(1)  [In relation to sale or purchase]  

Where SEGC:

(a)  allows under subsection 949(5) or 951(3) a claim made under Division 6 in respect of a sale of securities; or

(b)  allows under subsection 950(2) or 952(3) a claim made under Division 6 in respect of a purchase of securities;

SEGC is subrogated to all the claimant's rights and remedies in relation to the sale or purchase, as the case may be.

980(1A)  [In relation to novated purchase agreement]  

Where SEGC allows a claim under section 950 in respect of a purchase the agreement for which has been novated, SEGC is subrogated to all the rights and remedies of the claimant in relation to the replacement agreement or agreements.

980(1B)  [In relation to guaranteed securities loan]  

Where SEGC allows a claim under Division 6A in respect of an obligation under a guaranteed securities loan, SEGC is subrogated to all the claimant's rights and remedies in relation to that obligation.

980(1C)  [In relation to novated guaranteed securities loan]  

Where SEGC allows a claim under section 954D in respect of an obligation under a guaranteed securities loan that has been novated, SEGC is subrogated to all the claimant's rights and remedies in relation to the obligation, under a replacement agreement, that replaced the first-mentioned obligation.

980(1D)  [In relation to payment of money or transfer of securities]  

Where SEGC allows a claim under subsection 954N(1) or 954P(2) in respect of an obligation to pay an amount or to transfer securities, SEGC is subrogated to all the claimant's rights and remedies in relation to that obligation.

980(1E)  [In relation to failure to transfer securities]  

Where SEGC allows a claim under subsection 954P(3) in respect of a failure to transfer securities, SEGC is subrogated to all the rights and remedies that the claimant has in relation to that failure because of the subrogation effected by paragraph 954P(3)(a).

980(1F)  [In relation to purported transfer of securities under sec 954Y(2)]  

Where SEGC allows a claim under subsection 954Y(2) in respect of a purported transfer of securities, SEGC is subrogated to all the claimant's rights and remedies in relation to that purported transfer.

980(1G)  [In relation to purported transfer of securities under sec 954Y(3)]  

Where SEGC allows a claim under subsection 954Y(3) in respect of a purported transfer of securities, SEGC is subrogated to:

(a)  if the claimant is also the transferee referred to in that subsection - all the claimant's rights and remedies in relation to that purported transfer; or

(b)  otherwise - all the rights and remedies that the claimant has in relation to that purported transfer because of the subrogation effected by paragraph 954Y(3)(c).

980(2)  [In relation to unauthorised execution]  

Where SEGC allows a claim made under Division 7 in respect of an unauthorised execution (within the meaning of that Division), SEGC is subrogated to all the claimant's rights and remedies in relation to the conduct that constitutes the unauthorised execution.

980(2A)  [In relation to claim allowed under Div 7A]  

Where SEGC allows a claim made under Division 7A in respect of a contravention of the SCH certificate cancellation provisions, SEGC is subrogated to all the claimant's rights and remedies in relation to the contravention.

980(3)  [In relation to property]  

Where SEGC allows a claim made under Division 8 in respect of property, SEGC is subrogated to all the claimant's rights and remedies in relation to the property.

980(4)  [Insurer]  

Where, by virtue of this section, SEGC is subrogated to a right or remedy that a person has against another person, then:

(a)  if SEGC has reason to believe that an insurer may be liable to indemnify the other person in respect of the subject matter of the right or remedy - SEGC shall serve a notice on the insurer setting out particulars of the right or remedy and stating that SEGC is, by virtue of this section, subrogated to the right or remedy;

(b)  an insurer that considers that it may be liable so to indemnify the other person may, whether or not SEGC has served a notice on the insurer under paragraph (a), apply to be joined as a party to a proceeding that relates to the right or remedy and to which the first-mentioned person or SEGC is a party; and

(c)  the first-mentioned person or SEGC may, to the extent of the liability of an insurer so to indemnify the other person, enforce against the insurer a judgment or order obtained in such a proceeding in so far as the proceeding relates to the right or remedy.

980(5)  [Other rights not affected]  

Except as provided in this section, nothing in this Part affects a right or remedy that a claimant under Division 6, 6A, 6B, 6C, 7, 7A or 8 has against a person other than SEGC.