122ZFAssets and liabilities of transferring exchange’s fidelity fund

##### 122ZF Assets and liabilities of transferring exchange’s fidelity fund (1) The money that at the end of the transfer day in relation to a transferring exchange was in the transferring exchange’s fidelity fund shall, as soon as practicable after that day, be paid out of that fidelity fund and into the Fund. (2) At the beginning of the next day after the transfer day in relation to a transferring exchange: (a) the investments and other property of the transferring exchange’s fidelity fund that at the end of the transfer day were vested in the transferring exchange vest in the Corporation and become part of the Fund; (b) the rights that at the end of the transfer day the transferring exchange had, whether under or by virtue of Part IX or otherwise, in connection with the administration of the transferring exchange’s fidelity fund vest in the Corporation; and (c) the Corporation becomes liable to pay and discharge the debts, liabilities and obligations of the transferring exchange that arose, whether under or by virtue of Part IX or otherwise, in connection with the administration of the transferring exchange’s fidelity fund and that existed at the end of the transfer day. (3) A reference in subsection (2) to rights or to debts, liabilities and obligations does not include a reference to rights, or to debts, liabilities and obligations, as the case may be, arising under a contract of employment or under a contract for services. (4) Investments that at the end of the transfer day in relation to a transferring exchange were held, by a person other than the transferring exchange, for the purposes of the transferring exchange’s fidelity fund are held after that day for the purposes of the Fund. (5) After the transfer day in relation to a transferring exchange, an agreement or arrangement (other than a contract of employment or a contract for services) that was entered into: (a) by or on behalf of the transferring exchange as a party; and (b) in connection with the administration of the transferring exchange’s fidelity fund; and was in force at the end of that day has effect, with such modifications as the circumstances require, as if: (c) the Corporation were substituted for the transferring exchange as a party to the agreement or arrangement; and (d) a reference in the provisions of the agreement or arrangement to the transferring exchange were, except in relation to a time on or before that day, a reference to the Corporation. (6) Without limiting the generality of another provision of this section, where, as at the end of the transfer day in relation to a transferring exchange, an amount advanced under subsection 109(1) by the transferring exchange to its fidelity fund had not been repaid, an amount equal to the first‑mentioned amount is, after that day, payable, on demand, by the Corporation to the transferring exchange. (7) Where, at the end of the transfer day in relation to a transferring exchange, proceedings: (a) to which the transferring exchange was a party; and (b) that arose out of, or were otherwise connected with, the administration of the transferring exchange’s fidelity fund; were pending in a court or tribunal, the Corporation is, at the beginning of the next day after the transfer day, substituted for the transferring exchange as a party to the proceedings and has the same rights in the proceedings as the party for which it was substituted. (8) An amount that, as a result of the operation of this section, is or becomes payable by the Corporation is payable out of the Fund. (9) This section has effect subject to section 122ZH.