Paragraph 15

(1)

Subject to subparagraph (2), a relevant system must comprise procedures which provide that an Operator-instruction requiring a participating issuer to register a transfer of uncertificated units of a security, or informing a settlement bank of its payment obligations in respect of such a transfer, is generated only if—

(a)

it has—

(i)

received a system-member instruction from the transferor; or

(ii)

been required to do so by a court in the United Kingdom or by or under an enactment;

(b)

it has—

(i)

established that the transferor is likely to have title to, or is likely to have by virtue of regulation 25(1) or (2) an interest in, such number of units as is in aggregate at least equal to the number to be transferred; or

(ii)

established that the transfer is one of two or more transfers which may be notified to the participating issuer in accordance with regulation 24(1);

(c)

in the case of a transfer to a system-member for value, it has established that a settlement bank has agreed to make payment in respect of the transfer, whether alone or taken together with another transfer for value; and

(d)

the transfer is not in excess of any limit which by virtue of paragraph 12(a)(ii) the transferor has set on an authority given by him to a sponsoring system-participant.

(2)

A relevant system must comprise procedures which provide that an Operator-instruction requiring a participating issuer to register a transfer of uncertificated units of a security, or informing a settlement bank of its payment obligations in respect of such a transfer, may be generated if necessary to correct an error and if in accordance with the rules and practices of an Operator instituted in order to comply with this Schedule.