Section 12: Pledge of stock
consolidated text (as at 2007). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
12. Pledge of stock
(1) Subject to subsection (3), stock may, by a written instrument in a
form approved by the Bank and signed by the pledger and the pledgee, be
given in pledge in civil and commercial transactions.
(2) The instrument shall state—
(a) the nature of the debt in respect of which the pledge is given;
and
(b) that the certificate issued to the pledger has been delivered to
the pledgee in warranty of the debt.
(3) No pledge shall be valid unless the certificate delivered to the pledgee
has been endorsed by the Bank.
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(4) The Bank shall, after endorsing the certificate relating to the stock,
enter the date of a pledge given under this section and the name of the
pledgee in the register.
(5) Where the Bank is satisfied that a pledge given under this section has
been redeemed, it shall cancel the endorsement of the certificate and make
an appropriate entry in the register.