THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.13 - TITLE TO, AND TRANSFER OF, SECURITIES

Division 3 - Transfer of marketable securities and marketable rights

Subdivision C - SCH-regulated transfers

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SECTION 1109F   INDEMNITIES IN RESPECT OF WARRANTED MATTERS  

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1109F(1)  [Transfer not effected by member organisation]  

If:

(a)  a member organisation, or each of the partners in a partnership that is a member organisation, is taken by section 1109E to have warranted, in relation to a proper SCH transfer of quoted securities or quoted rights, that the transfer was effected by the member organisation; and

(b)  the transfer was not effected by the member organisation;

the member organisation, or, if it is a partnership, each of the partners in the member organisation, is liable to indemnify:

(c)  the issuing body in relation to the securities or rights; and

(d)  the transferor; and

(e)  the transferee; and

(f)  if a member organisation acted as the transferee's agent in the transfer - that member organisation; and

(g)  the securities clearing house;

against any loss or damage arising from the transfer not having been effected by the first-mentioned member organisation.

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1109F(2)  [Transferor not authorised to transfer]  

If:

(a)  a member organisation, or each of the partners in a partnership that is a member organisation, is taken by section 1109E to have warranted, in relation to a proper SCH transfer of quoted securities or quoted rights, that the transferor was legally entitled or authorised to transfer the securities or rights; and

(b)  the transferor was not legally entitled or authorised to transfer the securities or rights;

the member organisation, or, if it is a partnership, each of the partners in the member organisation, is liable to indemnify:

(c)  the issuing body in relation to the securities or rights; and

(d)  the transferee; and

(e)  if a member organisation acted as the transferee's agent in the transfer - that member organisation; and

(f)  the securities clearing house;

against any loss or damage arising from the transferor not having been legally entitled or authorised to transfer the securities or rights.

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1109F(3)  [Member organisation not authorised to effect transfer]  

If:

(a)  a member organisation, or each of the partners in a partnership that is a member organisation, is taken by section 1109E to have warranted, in relation to a proper SCH transfer of quoted securities or quoted rights, that the member organisation was authorised by the transferor to effect the transfer; and

(b)  the member organisation was not authorised by the transferor to effect the transfer;

the member organisation, or, if it is a partnership, each of the partners in the member organisation, is liable to indemnify:

(c)  the issuing body in relation to the securities or rights; and

(d)  the transferor; and

(e)  the transferee; and

(f)  if a member organisation acted as the transferee's agent in the transfer - that member organisation; and

(g)  the securities clearing house;

against any loss or damage arising from the first-mentioned member organisation not having been authorised by the transferor to effect the transfer.

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1109F(4)  [Sec 1109B]  

The effect of section 1109B is to be disregarded in determining, for the purposes of this section, whether a person or partnership:

(a)  was legally entitled or authorised to transfer quoted securities or quoted rights; or

(b)  was authorised by another person or partnership to effect a transfer of quoted securities or quoted rights.

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