Malaysia legislation

Section 40

of *SECURITIES INDUSTRY (CENTRAL DEPOSITORIES) ACT 1991

Section 40

Charging or pledging of securities

(2)

Where a request is made by a chargee or pledgee as provided under subsection (1), such request shall be supported by documents evidencing such charge or pledge in his favour.

(3)

The securities account maintained by the chargee or pledgee pursuant to subsection (1) shall be designated as the ―Pledged

Securities Account‖.

(4)

Where a charge or pledge over a deposited security has been discharged or released, the central depository or its authorized depository agent, as the case may be, shall, upon receipt of a notice in writing from the chargee or pledge confirming the same, transfer the deposited security into the securities account of the chargor or pledgor.

(5)

The provisions relating to the transfer or withdrawal of deposited securities shall apply, mutatis mutandis, to securities in the

Pledged Securities Account.

Securities in suspense