THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 4 - Levies where Fund less than minimum amount

SECTION 938   LEVY ON TRANSACTIONS  

938(1)  (Definitions)  

In this section:

(``appropriate participating exchange'') (Definition omitted by No 110 of 1990, Sch 1 (effective 18 December 1990).)

``leviable dealer'' , in relation to a transaction, means:

(a)  if, when the transaction is entered into, a determination under subsection (6) is in force in relation to a class of transactions that includes the first-mentioned transaction - the dealer prescribed by the determination; or

(b)  otherwise:

(i) in the case of a sale of securities - the dealer selling the securities; or

(ii) in the case of a purchase of securities - the dealer buying the securities; or

(iii) in the case of a guaranteed securities loan - the borrower.

``leviable transaction'' means:

(a)  a sale or purchase of securities by a person or partnership where, as at the time when the agreement for the sale or purchase is made:

(i) the sale or purchase is a reportable transaction as defined in subsection 920(1); and

(ii) the person or partnership is a member organisation of a participating exchange and carries on a securities business in this jurisdiction; or

(b)  a guaranteed securities loan where, as at the time when the loan is entered into, the borrower carries on a securities business in this jurisdiction.

[``reportable transaction''] (Definition omitted by No 201 of 1991, Sch 1 (effective 18 December 1991).)

938(2)  [Levy on leviable transactions]  

Where the amount in the Fund is less than the minimum amount, SEGC may, whether or not it also makes a determination under section 940, determine in writing that a levy is payable on leviable transactions.

938(3)  [Method of assessing levy]  

A levy under subsection (2) is payable in respect of a leviable transaction included in a class of transactions, or in any of 2 or more classes of transactions, determined in writing by SEGC for the purposes of the levy.

938(3A)  [Rate of levy set by SEGC]  

A levy under subsection (2) is payable at a rate or rates determined in writing by SEGC for the purposes of the levy.

938(3B)  [Different rates of levy]  

SEGC may determine under subsection (2) different rates of levy in respect of:

(a)  transactions in different kinds of securities; or

(b)  transactions by dealers included in different classes of dealers.

938(4)  [Determination to be given to participating exchanges]  

Where SEGC makes or varies a determination under subsection (3) or (3A), it shall give to each participating exchange a copy of the determination, or of the variation and of the determination as varied, as the case may be.

938(4A)  [Levy paid in another jurisdiction]  

Despite subsection (3), where an amount of a levy imposed under section 938 of the Corporations Law of another jurisdiction was payable in respect of a transaction and has been paid, an amount of levy imposed under this section is not payable in respect of the transaction.

938(5)  [Payment of levy]  

Where an amount of a levy is payable under this section in respect of a leviable transaction, the leviable dealer in relation to the transaction shall:

(a)  pay the amount of the levy to a participating exchange of which the dealer is a member organisation; and

(b)  if, but for this subsection, the dealer would not be required by a provision of a law or by the participating exchange's business rules to give to the participating exchange particulars of the transaction sufficient to enable the participating exchange to ascertain the amount of levy - so give such particulars;

within the period, and in the manner, specified by the participating exchange in writing either generally or in relation to a class of transactions that includes the first-mentioned transaction.

938(6)  [SEGC may prescribe leviable dealer]  

SEGC may make a written determination prescribing, in relation to a class or classes of transactions, the dealer who is to be the leviable dealer in relation to a transaction in that class or in any of those classes.

938(7)  [Securities exchange to pay levy]  

A securities exchange must, within the period and in the manner specified in writing by SEGC, pay to SEGC an amount equal to the amount of levy paid to the securities exchange under subsection (5).

938(8)  (Omitted by No 110 of 1990, Sch 1 (effective 18 December 1990).)

938(9)  [Amount to be paid into Fund]  

An amount paid to SEGC under subsection (7) shall be paid into the Fund.

938(10)  [Effect subject to sec 942]  

This section has effect subject to section 942.