Regulation 4

After regulation 6 there shall be inserted the following new regulation—

“Protection of Bank in relation to certain transfers of strips

7

(1)

This regulation applies where the CGO Rules make relevant provision for cases in which any person’s membership of the CGO Service is suspended or terminated, whether by reason of death, incapacity, bankruptcy, sequestration of his estate, winding-up, dissolution or any other cause, and any such person is referred to in this regulation as “the relevant person”.

(2)

In this Regulation, “relevant provision” means provision for transfers of strips registered in the name of the relevant person to be effected through the medium of the CGO Service by the Bank acting on the instructions of any person whose instructions the Bank would be entitled to accept as sufficient authority to effect a transfer by instrument in writing of—

(a)

those strips, or

(b)

where, by virtue of regulations made under section 47(1) of the Finance Act 1942, strips are not transferable by instrument in writing, any stock held by the relevant person which would be so transferable in accordance with those regulations.

(3)

The Bank may effect any transfer in accordance with any relevant provision notwithstanding that the suspension or termination of the relevant person’s membership of the CGO Service, or any event occasioning the same, has terminated any contractual authority to the Bank arising from or in connection with that membership, and, as regards the liability of the Bank to any person, any such transfer shall be treated as if such authority had not terminated, but without prejudice to any right which any person may have against any other person, not being the Bank.”.