122KClaim by buying dealer in respect of default by selling dealer

122K Claim by buying dealer in respect of default by selling dealer

(1) Where, as at the end of the completion period in relation to a reportable transaction that is a purchase by a dealer from another dealer:

(a) the first‑mentioned dealer has supplied, or is ready, willing and able to supply, to the other dealer, pursuant to the agreement for the purchase, the consideration for the purchase; and

(b) the other dealer has not supplied to the first‑mentioned dealer, pursuant to that agreement, settlement documents in relation to the purchase;

the first‑mentioned dealer may make a claim in respect of the purchase. (2) Where a dealer makes a claim in respect of a purchase of securities by the claimant from another dealer and, at a particular time, the Board is satisfied that, as at that time:

(a) subsection (1) entitles the claimant to make the claim;

(b) the claimant has:

(i) for the purposes of the claim, paid to the Corporation; or

(ii) pursuant to the agreement for the purchase, paid to the other dealer;

the amount of the consideration for the purchase;

(c) settlement documents in relation to the purchase have not been supplied to the claimant pursuant to the agreement for the purchase; and

(d) the agreement has not been discharged or otherwise terminated;

the Corporation shall allow the claim and, subject to section 122N, supply to the claimant settlement documents in relation to the purchase.