(1) For the purposes of this Part, an agreement is a guaranteed securities loan if:

(a)

under the agreement:

(i)

a participating exchange is to transfer securities of a specified kind and number to, or as directed by, a person or partnership; and

(ii)

in order to put the participating exchange in the same position (as nearly as practicable) as if the agreement had not been made, the person or partnership is later to transfer to, or as directed by, the participating exchange such securities and security benefits as the agreement requires; and

(b)

the person or partnership is a member organisation of the participating exchange on the day when the agreement is entered into; and

(c)

the agreement is or was entered into after 18 December 1991; and

(d)

the agreement is of a kind that, according to the business rules of the participating exchange, is to be guaranteed under this Division.

(2) For the purposes of the application of this Part in relation to a guaranteed securities loan:

(a)

the participating exchange referred to in subparagraph (1)(a)(i) is the lender ; and

(b)

the person or partnership referred to in subparagraph (1)(a)(i) is the borrower ; and

(c)

the securities transferred as mentioned in subparagraph (1)(a)(i) are borrowed securities .

(3) The fact that an agreement includes obligations in addition to those mentioned in subsection (1) does not prevent the agreement from being a guaranteed securities loan.