Government Securities (Debt Market and Investment) Act 1992 · 2020 Revised Edition · Part 5 · Book‑Entry Government Securities and Treasury Bills
20. Transfers and pledges effected by other means
Feedback & supportDespite section 19, a transfer or pledge of book‑entry Government securities, or any interest in such securities, 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 book‑entry Government securities, or any interest in such securities, if the securities were issued by the Authority in the form of engraved or printed certificates.
pledge
“pledge” includes a pledge of, or any security interest in, book‑entry Government securities —(a)as collateral for loans or advances; or (b)to secure deposits of public moneys or the performance of an obligation;
The Authority is deemed not to be —
a bailee for the purposes of notification of pledges of book‑entry Government securities not effected in accordance with section 19; and
a person in possession of book‑entry Government securities for the purposes of acknowledgment of transfers of such securities not effected in accordance with section 19.
Where book-entry Government securities are recorded on the books of a depositary institution for account of the pledgor or transferor of the securities and such securities are on deposit with the Authority in an account, that depositary institution is, for the purposes of effecting delivery of the securities to a purchaser or pledgee, deemed to be —
depositary institution
“depositary institution” means a financial institution approved by the Authority which regularly —(a)accepts in the course of its business book‑entry Government securities by way of a custodial service for its customers; and(b)maintains accounts in the names of its customers reflecting ownership or interest in such book‑entry Government securities;
the bailee to which notification of the pledge of the securities may be given; or
the person in possession from which acknowledgment of the holding of the securities may be obtained.
The Authority must not accept any notice or advice of a transfer or pledge of any book‑entry Government security not effected in accordance with section 19 and any such notice or advice is void.
The Authority may continue to deal with its depositor in accordance with this Part despite any transfer or pledge not effected in accordance with section 19.
depositor
“depositor” means any person in whose name an account is established and maintained on the records of the Authority;