Trusts Act 2025
sec.74Investment in securities under RITS system
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sec.74 Investment in securities under RITS system
A chose in action arising under the RITS system that entitles its holder to a security of a particular description (the underlying security ) is, for this Act and a trust instrument, taken to be the same in all respects as the underlying security. The holding or acquisition by a trustee of a chose in action mentioned in subsection (1) is taken to be an investment by the trustee in the underlying security. It does not matter that the right conferred by the chose in action is a right in relation to securities of a particular description and not in relation to particular securities. In this section— RITS system means the Reserve Bank Information and Transfer System operated by the Reserve Bank of Australia, as operating from time to time. (sec.74-ssec.1) A chose in action arising under the RITS system that entitles its holder to a security of a particular description (the underlying security ) is, for this Act and a trust instrument, taken to be the same in all respects as the underlying security. (sec.74-ssec.2) The holding or acquisition by a trustee of a chose in action mentioned in subsection (1) is taken to be an investment by the trustee in the underlying security. (sec.74-ssec.3) It does not matter that the right conferred by the chose in action is a right in relation to securities of a particular description and not in relation to particular securities. (sec.74-ssec.4) In this section— RITS system means the Reserve Bank Information and Transfer System operated by the Reserve Bank of Australia, as operating from time to time.