PART A.2 – STOCK TRANSACTIONS

4808. Stock delivery

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    1. All trades are to be considered for regular delivery (defined in subsection 4808(2)), unless otherwise agreed to in writing by the parties to a transaction at the time of the transaction.

    2. In section 4808 “regular delivery” is defined as:

      1. Exchange-listed shares

        1. The settlement date generally accepted according to industry practice for the shares in the market in which the transaction occurs, including foreign jurisdictions.

      2. Unlisted registered shares

        1. The settlement date generally accepted according to industry practice for the shares in the market in which the transaction occurs, including foreign jurisdictions.

        2. For transactions between Dealer Members in shares that occur one business day before the record date, the shares must be traded ex dividend, ex rights, or ex payments.

        3. For transactions between Dealer Members in shares that are not ex dividend, ex rights, or ex payments at the time the transaction occurs and delivery is not completed before twelve o'clock noon (12 p.m.) at a transfer point on the date of the closing of the transfer agent’s books, the seller is responsible to the buyer for the payment of such dividends or payments, and delivery of such rights, as may be involved, on their due dates. For the purposes of this sub-clause 4808(2)(ii)(c), where the record date falls on a Saturday or other non-business day, the business day prior to the record date is to be treated as the effective record date.

    3. New issues delivery

      1. The regular delivery requirements in subsection 4808(2) are not intended to interfere in any way with the common practice of dealing in new issues during the period of primary distribution. However, the regular delivery requirements will come into effect on the appropriate number of business days prior to the new issue being first available for physical delivery.

    4. Location

      1. For any transaction between Dealer Members in the same municipality, delivery should be advised by 11:30 a.m. on the fourth business day after a transaction takes place.

      2. For any transaction between Dealer Members located in different municipalities, delivery should be received by the buyer by the expiration of the fourth business day after the transaction takes.

    5. Good delivery

      1. Securities traded by Dealer Members must be good delivery securities. Therefore, they must have the necessary endorsements, guarantees or both, and meet all legal and regulatory requirements so that their titles can be transferred by delivery to the buyer on settlement date. The seller must obtain them and include them with the delivery.

      2. Certificates registered in the name of:

        1. an individual, must be endorsed by the registered holder in exactly the same manner as registered and the endorsement guaranteed by a Dealer Member or by a member of an acceptable exchange in Canada or the United States or by a chartered bank or qualified Canadian trust company. Where the endorsement does not exactly correspond to the registration shown on the face of the certificate, a certification by a Dealer Member, a member of an acceptable exchange in Canada or the United States, a chartered bank or a qualified Canadian trust company that the two signatures are the same person’s is required,

        2. a Dealer Member or a member of an acceptable exchange in Canada or the United States or a nominee of either and properly endorsed,

        3. a chartered bank or qualified Canadian trust company or the nominee of a chartered bank or qualified Canadian trust company and properly endorsed by a Dealer Member, or

        4. any other manner providing it is properly endorsed and the endorsement is guaranteed by a Dealer Member or by a member of an acceptable exchange in Canada or the United States or by a chartered bank or qualified Canadian trust company.

      3. Certificates in board lot denominations (or less) as required by the exchange on which the stock is traded. Unlisted stocks should also be in denominations similar to listed stocks in the same category and price range.

    6. Not good delivery

      1. A mutilated or torn certificate or coupon unless acceptable to receiving broker or dealer.

      2. A certificate registered in the name of a firm or corporation that has made an assignment for the benefit of creditors or has been declared bankrupt.

      3. A certificate signed by a trustee or administrator unless accompanied by sufficient evidence of authority to sign.

      4. A certificate with documents attached other than a registered bond of an issue available in registered form only, with completed power of attorney to transfer attached. (One power of attorney for each certificate or an amalgamated power of attorney if acceptable to receiving broker or dealer).

      5. A certificate that has been altered or erased (other than by the transfer agent) whether or not such alteration or erasure has been guaranteed.

      6. A certificate on which the assignment or substitute attorney has been altered or erased.

      7. A registered stock unless it bears a certificate that provincial tax has been paid where applicable.

      8.  A certificate that has a stop transfer placed against it, the stop having been placed prior to delivery being made to the receiving dealer or broker.

    7. Prior to notice of call

      1. Sales or purchases of securities prior to notice of call in part but not in full and undelivered on date of such notice, must be completed on the basis of the original transaction. Date of notice is the date of the notice of call irrespective of the date of publication of such notice. Called securities do not constitute good delivery unless the transaction is so designated at its inception.

      2. Sales or purchases of securities prior to notice of call in full and undelivered at time of such notice must be completed on the terms of the original transaction.

    There is no history log for this rule.