If:

(a)

under an agreement for the sale or purchase of securities, or under a replacement agreement in relation to such an agreement that has been novated, a person or partnership is obliged to transfer securities of a particular kind and number to another person or partnership; and

(b)

for the purpose of discharging the obligation, the first-mentioned person or partnership:

(i)

elects, in accordance with the transfer delivery service provisions of a settlement authority, to bring about a transfer of securities of that kind and number to the other person or partnership by the means provided for in those provisions; and

(ii)

for the purpose of so bringing about that transfer, transfers securities of that kind and number to the TDS nominee;