If:

(a)

a person or partnership (in this section called the transferor ) is, under provisions of a kind referred to in subsection 954P(1), obliged to transfer securities of a particular kind to another person or partnership (in this section called the transferee ); and

(b)

for the purpose of wholly or partly discharging the obligation, the transferor:

(i)

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

(ii)

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