Investment in securities under Reserve Bank RITS system
14F Investment in securities under Reserve Bank RITS system
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 trust instrument creating a trust, taken to be the same in all respects as the underlying security.
Accordingly, the holding or acquisition by a trustee of such a chose in action is to be regarded as 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 respect of securities of a particular description and not in respect of particular securities.
This section applies to a trust created before or after the commencement of this section but applies only to the extent that the trust instrument creating the trust does not expressly forbid its application.
In this section—
the RITS system means the Reserve Bank Information and Transfer System operated by the Reserve Bank of Australia, as operating from time to time.
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