S.L. 459.1 Art. 11

(1) Any issue arising in relation to book entry securities collateral with respect to -

(a) the legal nature and proprietary effects of book entry securities collateral;

(b) the requirements for perfecting a financial collateral arrangement relating to book entry securities collateral and the provision of book entry securities collateral under such an arrangement, and the completion of the steps necessary to render such an arrangement and provision effective against third parties;

(c) whether a person’s title to or interest in such book entry securities collateral is overridden by or subordinated to a competing title or interest, or a good faith acquisition has occurred; and

(d) the steps required for the realisation of book entry securities collateral following the occurrence of an enforcement event; shall be governed by the law of the country in which the relevant account is maintained.

(2) For the purposes of this regulation, the law of a country is a reference to its domestic law, disregarding any rule under which, in deciding the relevant issue, reference should be made to the law of another country.