Securities Services Act, 2004 (Act No. 36 of 2004)Chapter IV : Custody and Administration of SecuritiesGeneral provisions relating to custody and administration of securities43. Pledge, or cession of securities to secure debt |
| (1) | A pledge or cession to secure a debt, in respect of an interest in securities held by a central securities depository or participant or in a securities account held on behalf of a participant, must be effected by entry in the central securities account or the securities account of— |
| (a) | the pledgor in favour of the pledgee specifying the name of the pledgee, the interest in the securities pledged and the date; or |
| (b) | the cedent in favour of the cessionary specifying the name of the cessionary, the interest in the securities ceded and the date, |
as the case may be.
| (2) | Such interest in securities may not be transferred except with the written consent of the pledgee or cessionary. |
| (3) | The pledgee or cessionary of such interest in securities is entitled to all the rights of a pledgee of movable property or cessionary of a right in movable property pledged or ceded to secure a debt. |
| (4) | Subsections (1), (2) and (3) also apply, with the changes required by the context, to the pledge and cession to secure a debt by one participant to another of an interest in securities held by a central securities depository in a central securities account. |