Section 8B — LOAN (LOCAL) ACT 1959

(2)

Any person, other than a participating investing institution, desiring either to make or take a transfer of a stock shall do so only through a depository institution.

(3)

A depository institution shall maintain with the Bank, in addition to the account maintained by it under subsection 8A(4), a separate single account in respect of all transfers effected through it under subsection (2).

(4)

The Bank shall—

(a)

pay to a depository institution the interest due on the principal moneys represented by each of the stock standing in the depository institution’s account under subsection (3) on the date the interest becomes payable under section 9; and

(b)

repay to the institution the principal moneys represented by the stock standing in its account under subsection (3)

on the date it becomes redeemable under section 11,

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by the means and in the manner as may be determined by the Bank.

(5)

A depository institution shall maintain a customer’s account in respect of every transferor and transferee who is a party to any transfer effected through the depository institution under subsection (2), except where a customer’s account in respect of a transferee is maintained by another depository institution, in which case the first mentioned depository institution shall have the stock transferred into the transferee’s account with the second mentioned depository institution.

(6)

Where a transfer of stock is made by any person under subsection (2), the following procedure shall be complied with by the respective depository institutions:

(a)

the depository institution by which the transfer is made shall immediately issue—

(i)

to the transferor, a statutory acknowledgement receipt in the form in the First Schedule in respect of the transfer; and

(ii)

to the transferee, a statutory acknowledgement receipt in the form in the First Schedule in respect of the transfer, if the depository institution maintains a customer’s account in respect of the transferee’s stock; and

(b)

if another depository institution maintains a customer’s account in respect of the transferee’s stock, the depository institution mentioned in paragraph (a) shall immediately notify the other depository institution of the transfer and the other depository institution shall immediately issue to the transferee a statutory acknowledgement receipt in the form in the First Schedule in respect of the transfer.

(7)

A statutory acknowledgement receipt shall not be capable of being negotiated or dealt with in any manner whatsoever, and shall be used solely between the depository institution which issued it and the

(i)

(ii)

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stock customer to whom it was issued as evidence of the transfer of a stock under subsection (2) to which it relates.

(8)

Where the amount in the account maintained by a depository institution with the Bank under subsection (3) is affected by a transfer effected through it under subsection (2), the depository institution shall communicate immediately to the Bank information of any change in the amount caused by the transfer.

Duties and obligations of depository institutions in relation to transfers effected under subsection 8B(2)