Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.11.19

Indemnities by market licensee and broker if transfer document purports to bear their stamps

             (1)  This regulation applies if:

                     (a)  a transfer document (the first document ) relating to Division 3 assets or Division 3 rights:

                              (i)  has been duly completed in accordance with Part 1 of Form 1 or Form 5; and

                             (ii)  bears a stamp that purports to be the stamp of the transferor's broker; and

                     (b)  another transfer document:

                              (i)  relates to any or all of the Division 3 assets or Division 3 rights; and

                             (ii)  has been duly completed in accordance with Part 1 of Form 3 or Form 7; and

                            (iii)  bears a stamp that purports to be the stamp of a market licensee.

             (2)  The market licensee is liable to indemnify:

                     (a)  the issuer in relation to the Division 3 assets or Division 3 rights; and

                     (b)  the transferor in relation to the other document; and

                     (c)  the transferee in relation to the other document; and

                     (d)  the broker of the transferee in relation to the other document;

against any loss or damage arising if:

                     (e)  the stamp mentioned in subparagraph (1)(a)(ii) is not the stamp of the transferor's broker; or

                      (f)  apart from paragraph 7.11.17(4)(a), the designated broker was not authorised to execute the first document on behalf of the transferor in relation to the first document.

             (3)  Each associate (if any) of the transferor's broker is liable to indemnify the market licensee against any loss or damage arising as mentioned in subregulation (2).

             (4)  If the transferor's broker is not a broker's agent, the transferor's broker is liable to indemnify the market licensee against any loss or damage arising as mentioned in subregulation (2).

             (5)  Nothing in this regulation limits the operation of anything in regulation 7.11.17 or 7.11.18 or of anything else in this regulation.



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