122TOrdering of alternative claims and prevention of double recovery

##### 122T Ordering of alternative claims and prevention of double recovery (1) Where: (a) a member organisation has received, pursuant to the agreement for a sale or purchase of securities by the member organisation on behalf of a person, the consideration for the sale or settlement documents in relation to the purchase, as the case may be; and (b) subsection 122L(1) or 122M(1), as the case may be, entitles the person to make a claim against the Corporation under Division 6 in respect of the sale or purchase; subsection (2) has effect. (2) This Division does not, by reason of: (a) a dealer, being the member organisation or a partner in the member organisation, having become insolvent at a particular time; and (b) the member organisation having received, pursuant to the agreement, the consideration or the settlement documents; entitle the person to make a claim in respect of the consideration or the settlement documents, as the case may be, unless the member organisation’s obligations to the person in respect of the sale or purchase, as the case may be, in so far as those obligations related to the consideration or the settlement documents, were discharged before that time. (3) Where: (a) by reason of a dealer having become insolvent on a particular day, this Division entitles a person to make a claim (in this subsection referred to as the first claim) in respect of property; and (b) by reason of a dealer having become insolvent on a later day, this Division entitles the person to make another claim in respect of the property; the Corporation shall not allow the other claim unless: (c) the person has made the first claim and the Corporation has allowed or disallowed it; (d) the Board is satisfied that if the first claim had been made the Corporation would have disallowed it; or (e) the Board is satisfied that, when the person first became aware of the dealer referred to in paragraph (b) having become insolvent on the later day: (i) the first claim was barred; or (ii) it was no longer reasonably practicable for the person to make the first claim before it became barred. (4) Where: (a) at a particular time, the Corporation allows a claim made by a person under this Division in respect of property; and (b) by reason of: (i) a dealer having become insolvent (whether before, at or after that time); and (ii) the property having, before that time, been entrusted or received as mentioned in paragraph 122R(1)(b); this Division entitles the person to make another claim in respect of the property; the Corporation shall not allow the other claim.