New Zealand Legislation: Acts

18 Meaning of possession in certain cases

• (1) For the purposes of this Act, a person takes possession of an investment security, other than an emissions unit, if,—

  • (a) in the case of an investment security that is evidenced by a security certificate, the person takes physical possession of that certificate; or

  • (b) in the case of an investment security that is traded or settled through a clearing house or securities depository, the clearing house or securities depository, as the case may be, records the interest of the person in the investment security; or

  • (c) in the case of an investment security that is not evidenced by a security certificate and that is not traded or settled through a clearing house or securities depository, the records maintained by the issuer, or on behalf of the issuer, record the interest of the person in the investment security; or

  • (d) in the case of an investment security that is held by a nominee, the records of the nominee record the interest of the person in the investment security.

  (1A) For the purposes of this Act, a person takes possession of an investment security that is an emissions unit if the emissions unit is, in the ordinary course of business,—

  • (a) traded or settled through a clearing house or securities depository, if the clearing house or securities depository, as the case may be, records the interest of the person in the emissions unit:

  • (b) not traded or settled through a clearing house or securities depository, if the unit register established under section 18 of the Climate Change Response Act 2002 records the name of the person as the possessor of the unit:

  • (c) held by a nominee, if the records of the nominee record the interest of the person in the emissions unit.

  (2) For the purposes of this Act, a person takes possession of a negotiable instrument if—

  • (a) the person takes physical possession of the negotiable instrument; or

  • (b) in the case of a negotiable instrument that is traded or settled through a clearing house or securities depository, the clearing house or securities depository, as the case may be, records the interest of the person in the negotiable instrument.

  (3) For the purposes of this Act, a secured party is not in possession of collateral that is in the actual or apparent possession or control of the debtor or the debtor's agent.

  Section 18(1): amended, on 26 September 2008, by section 81(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

  Section 18(1A): inserted, on 26 September 2008, by section 81(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).