Clause 5

A transfer or a pledge of any book-entry Treasury Bill to the Authority or to the Government or to any transferee or pledgee eligible to maintain an appropriate account in its name with the Authority shall be effected, notwithstanding any written law to the contrary, by the Authority making an appropriate entry in its records of the book-entry Treasury Bill transferred or pledged.(2) The making of an entry in the records of the Authority under subsection (1) shall —

have the effect of a delivery of the book-entry Treasury Bill as if the Bill had been issued in the form of an engraved or printed certificate;

have the effect of a taking of delivery by the transferee or pledgee;

constitute the transferee or pledgee a holder; and

if a pledge, have the effect of vesting a security interest in favour of the pledgee.(3) A transfer or a pledge of a book-entry Treasury Bill effected in accordance with this section shall have priority over any transfer or pledge involving, or any interest in, the book-entry Treasury Bill effected or created in any other manner before, on or after the date of the transfer or pledge in accordance with this section.Transfers and pledges effected by other means9.—

Notwithstanding section 8, a transfer or a pledge of a book-entry Treasury Bill, or any interest therein, which is maintained by the Authority in an account may be effected by any means that would be effective to effect a transfer or pledge of a book-entry Treasury Bill, or any interest therein, if the Bill was issued by the Authority in the form of engraved or printed certificates.(2) The Authority shall be deemed not to be —

a bailee for purposes of notification of pledges of book-entry Treasury Bills not effected in accordance with section 8; and

a person in possession of book-entry Treasury Bills for purposes of acknowledgment of transfers of such Bills not effected in accordance with section 8.(3) Where book-entry Treasury Bills are recorded on the books of a depositary institution for account of the pledgor or transferor thereof and such Treasury Bills are on deposit with the Authority in an account, such depositary institution shall, for the purposes of effecting delivery of such book-entry Treasury Bills to a purchaser or pledgee, be deemed to be the bailee to which notification of the pledge of the book-entry Treasury Bills may be given or to be the person in possession from which acknowledgment of the holding of the book-entry Treasury Bills may be obtained.(4) The Authority shall not accept any notice or advice of a transfer or pledge of any book-entry Treasury Bill not effected in accordance with section 8 and any such notice or advice shall be void.(5) The Authority may continue to deal with its depositor in accordance with this Act notwithstanding any transfer or pledge not effected in accordance with section 8.Authority to be discharged by action on instructions10.—

The Authority shall not be liable for conversion or for participation in any breach of fiduciary duty where the Authority has, in respect of book-entry Treasury Bills maintained in accounts maintained by the Authority, effected pledges or made entries regarding such book-entry Treasury Bills, or transferred or delivered the book-entry Treasury Bills, according to the instructions of its depositor notwithstanding that the depositor had no right to dispose of or take any other action in respect of the book-entry Treasury Bills.(2) The Authority shall be fully discharged of its obligations under this Act by the transfer or delivery of book-entry Treasury Bills upon the instructions of its depositor.Confirmation of transaction