22Choses in action under RITS system, presumptions as to

##### 22. Choses in action under RITS system, presumptions as to (1) A chose in action arising under the RITS system and which entitles its holder to a security of a particular description (the underlying security) is, for the purposes of this Act and the instrument creating a trust, taken to be the same in all respects as the underlying security. (2) The holding or acquisition by a trustee of a chose in action referred to in subsection (1) shall be regarded as an investment by the trustee in the underlying security. (3) It does not matter that the right conferred by the chose in action referred to in subsection (1) is a right in respect of securities of a particular description and not in respect of particular securities. (4) This section applies to a trust created before or after the coming into operation of the *Trustees Amendment Act 1997* 1 but applies only to the extent that the trust instrument creating the trust does not expressly prohibit its application. RITS system means the Reserve Bank Information and Transfer System operated by the Reserve Bank of Australia, as operating from time to time. [Section 22 inserted: No. 1 of 1997 s. 6.]