THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 10 - Transitional

SECTION 985   ASSETS AND LIABILITIES OF JOINING EXCHANGE'S FIDELITY FUND  

985(1)  [Payment from fidelity fund to Fund]  

The money that at the end of the joining day in relation to a joining exchange was in the joining exchange's fidelity fund shall, as soon as practicable after that day, be paid out of that fidelity fund and into the Fund.

985(2)  [Transfer from joining exchange]  

At the beginning of the next day after the joining day in relation to a joining exchange:

(a)  the investments and other property of the joining exchange's fidelity fund that at the end of the joining day were vested in the joining exchange vest in SEGC and become part of the Fund;

(b)  the rights that at the end of the joining day the joining exchange had, whether under a previous law or otherwise, in connection with the administration of the joining exchange's fidelity fund vest in SEGC; and

(c)  SEGC becomes liable to pay and discharge the debts, liabilities and obligations of the joining exchange that arose, whether under a previous law or otherwise, in connection with the administration of the joining exchange's fidelity fund and that existed at the end of the joining day.

985(3)  [Rights, debts, etc.]  

A reference in subsection (2) to rights or to debts, liabilities and obligations does not include a reference to rights, or to debts, liabilities and obligations, as the case may be, arising under a contract of employment or under a contract for services.

985(4)  [Investments held by other person]  

Investments that at the end of the joining day in relation to a joining exchange were held, by a person other than the joining exchange, for the purposes of the joining exchange's fidelity fund are held after that day for the purposes of the Fund.

985(5)  [Agreements]  

After the joining day in relation to a joining exchange, an agreement (other than a contract of employment or a contract for services) that was entered into:

(a)  by or on behalf of the joining exchange as a party; and

(b)  in connection with the administration of the joining exchange's fidelity fund;

and was in force at the end of that day applies, with such modifications as the circumstances require, as if:

(c)  SEGC were substituted for the joining exchange as a party to the agreement; and

(d)  a reference in the agreement to the joining exchange were, except in relation to a time on or before that day, a reference to SEGC.

985(6)  [Outstanding advances to fidelity fund]  

Without limiting the generality of another provision of this section, where, as at the end of the joining day in relation to a joining exchange, an amount advanced under subsection 905(1) by the joining exchange to its fidelity fund has not been repaid, an amount equal to the first-mentioned amount is, after that day, payable, on demand, by SEGC to the joining exchange.

985(7)  [Proceedings]  

Where, at the end of the joining day in relation to a joining exchange, proceedings:

(a)  to which the joining exchange was a party; and

(b)  that arose out of, or were otherwise connected with, the administration of the joining exchange's fidelity fund;

were pending in a court or tribunal, SEGC is, at the beginning of the next day after the joining day, substituted for the joining exchange as a party to the proceedings and has the same rights in the proceedings as the party for which it was substituted.

985(8)  [Amount payable by SEGC payable out of Fund]  

An amount that, as a result of the operation of this section, is or becomes payable by SEGC is payable out of the Fund.

985(9)  [Applies subject to sec 987]  

This section applies subject to section 987.