(1) This section applies where the holder of a licence (in this section called
the dealer ) receives for safe custody scrip that is the property of another
person (in this section called the client ) and for which the dealer, or a
nominee controlled by the dealer, is accountable.
(2) If the client requests that the body corporate that issued or made
available the securities underlying the scrip register the scrip in the name
of such a nominee, the dealer must cause the body corporate so to register
them.
(3) If the client requests that the scrip be deposited in safe custody with an
Australian ADI with which the dealer maintains an account, the dealer must
cause the scrip to be so deposited.
(4) If:
- (a)
- neither of subsections (2) and (3) applies; and
- (b)
- the scrip is not registered in the client's name by the body corporate
that issued or made available the securities underlying the scrip;
the dealer must cause the scrip to be so registered.
(5) A dealer must not deposit the scrip as security for a loan or advance to
the dealer unless:
- (a)
- the client owes the dealer an amount in connection
with a transaction entered into by the dealer on the client's behalf; and
- (b)
- the dealer gives the client a written notice that identifies the scrip and
states that the dealer proposes so to deposit it; and
- (c)
- the amount, or the total of the amounts, that the client so owes on the
day of the deposit is not less than the amount of the loan or advance.
(6) If the dealer deposits the scrip as permitted by subsection (5), the
dealer:
- (a)
- must, within one business day after the amount or amounts first
referred to in paragraph (5)(c) are repaid, withdraw the scrip from that
deposit; and
- (b)
- if, at the end of 3 months after the day of that deposit, or at the end of
any subsequent interval of 3 months, the scrip has not been withdrawn from
that deposit—give the client written notice of that fact.
Commonwealth Numbered Acts