Div 5Security in Court.

Division 5.—Security in Court.

Security by bond.

40. Except where these Rules otherwise provide, where a person is required to give security, the security shall be in the form of a bond with a surety or sureties to the person proposed to be secured.

Amount of bond.

41. The bond shall be taken in a penal sum, which shall not be less than the sum for which security is to be given, and probable costs, unless the opposite party consents to it being taken for a less sum.

Deposit in lieu of bond.

42. Where a person is required to give security he may, in lieu thereof, lodge in Court a sum equal to the sum in question in respect of which security is to be given and the probable costs of the trial of the question, together with a memorandum to be approved of by the Registrar and to be signed by that person, his solicitor, or agent, setting forth the conditions on which the money is deposited.

Security account.

43.—(1.) Where any sum is lodged in Court in pursuance of the last preceding rule it shall be paid to a separate account in the proceeding, to be called the “Security Account”, and to abide the order of the Court, and the person paying the sum shall give notice of the payment to the party for whose benefit the security is to be given.

(2.) The notice shall be accompanied by an original receipt for the money paid into Court.

Disposal of money paid into Court.

44.—(1.) In any case in which money has been paid into Court as security for costs, when the proceeding has been finally disposed of, if the party by whom the payment into Court was made is adjudged to pay the costs of the proceeding, or any balance in respect of the costs of the proceeding, or any other balance of costs in the proceeding, to any parties for whose security the payment was made, the amount standing to the credit of the Security Account in the proceeding shall, unless the Court or a Justice otherwise orders, be liable to be applied in payment of the costs so ordered to be paid to those parties.

(2.) In any other case the party by whom the payment into Court was made shall be entitled to have the sum paid out to him.

Registrar to certify at conclusion of proceeding.

45. When a proceeding has been finally disposed of by consent or otherwise the Registrar shall, on the application of any party to the proceeding, and on being satisfied that that party is entitled to have any money standing to the credit of the Security Account paid out to him, give him a certificate to that effect.

Security of guarantee society.

46. The security of any incorporated company or guarantee society approved by the Court or the opposite party may be given in lieu of a bond or a deposit.