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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 891

Deposits to be invested by stock exchange

(1) Where a stock exchange receives a deposit from a person or partnership under section 889, the stock exchange holds the deposit in trust for the person or partnership and must invest the deposit:

(a)
on interest-bearing term deposit with an Australian ADI; or

(b)
on deposit with an eligible money market dealer.

(2) A participating exchange must pay into the Fund money received by way of interest in respect of amounts invested by it under subsection (1). (3) A stock exchange (other than a participating exchange) must pay money received by way of interest in respect of amounts invested by it under subsection (1) into its fidelity fund. (4) A stock exchange must, on demand being made by a person or partnership who has lodged a deposit with the stock exchange, pay to the person or partnership an amount on deposit with the stock exchange under section 889. (5) Nothing in subsection (4) affects section 889. (6) Where the licensee, or a partnership in which the licensee is a partner, receives an amount under subsection (4) from a stock exchange, the licensee or partnership, as the case may be, must pay the amount into a trust account of the licensee or partnership, as the case may be. (7) The Fund must guarantee the repayment by a participating exchange of the amount of a deposit received by the participating exchange from a person or partnership. (8) The fidelity fund of a stock exchange (other than a participating exchange) must guarantee the repayment by the stock exchange of the amount of a deposit received by the stock exchange from a person or partnership.



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