22 DECEMBER NEW ZEALAND GAZETTE 4641

51.13 Any notice or other communication to be given to the Appeal Board shall be delivered or posted, addressed to the Appeal Board, at the address for the time being of the principal place of business of the Exchange.

SECTION 11—FIDELITY FUND

52. CONSTITUTION AND PURPOSE

52.1 In this Rule 52:

“agent” in relation to a Dealer includes any director, officer, employee or servant of the Member and where the Dealer is a partnership includes any partner in the Dealer;

“fraudulent misuse” includes misuse contrary to the provisions of any applicable law or regulation;

“NZFOE” means Level Ten (1992) Limited, the company which formerly owned and operated the Exchange;

“relative” in relation to any person means the spouse, parent or remoter lineal ancestor, son, daughter or remoter issue, brother or sister, of the person.

52.2 The Company shall maintain a fidelity fund, which shall be the property of the Company, but shall be kept separately from all its other property, and shall be held in trust for the purposes set out in this Rule 52.

52.3 The Fidelity Fund shall consist of:

(a) the amount which constituted the fidelity fund of NZFOE at the date of adoption of these Rules by the Company and which was on such date resettled on the Company by NZFOE on the trusts set out in this Rule;

(b) the initial contribution, if any, paid to the Company for payment into the Fidelity Fund by each new Dealer, as fixed from time to time by the Company;

(c) annual contributions and levies paid by Dealers under Rule 53;

(d) the interest and profits from time to time accruing from the investments of the Fidelity Fund; provided that unless and until the Company from time to time decides otherwise the net income from the Fidelity Fund shall be paid to the Company to be applied in defraying the general costs of administration of the Fidelity Fund and/or the business of the Company;

(e) moneys recovered by or on behalf of the Company in exercise of a right of action conferred by this Rule 52;

(f) moneys paid by an insurer pursuant to any contract of insurance or indemnity entered into by the Company pursuant to Rule 52.19; and

(g) any other moneys lawfully paid into the Fidelity Fund by the Company or any other person.

52.4 Notwithstanding any other provision of these Rules or of the Contracts (Privity) Act 1982 the Company shall have power from time to time:

(a) appoint a new trustee of the trusts relating to the Fidelity Fund in place of the Company;

(b) vary all or any of the terms of the trusts relating to the Fidelity Fund;

(c) transfer the Fidelity Fund to the trustee or trustees of any fidelity fund maintained by Sydney Futures Exchange Limited the benefit of which is to be made available to persons dealing with Dealers in place of the Fidelity Fund;

(d) resettle the Fidelity Fund on such other person or persons, and upon such terms, as the Company may think fit.

52.5 Except as otherwise provided in this Rule 52, there shall be paid out of the Fidelity Fund, in such order as the Company deems proper:

(a) the amount of all claims, including costs, allowed by the Company or established against the Fidelity Fund under this Rule 52;

(b) the amount of all claims, including costs, allowed by the Company or established against the fidelity fund of NZFOE referred to in Rule 52.3(a) after the date of adoption of these Rules in accordance with the rules of that fund and which would have been payable out of that fund but for its resettlement upon the Company;

(c) all legal and other expenses incurred in investigating, defending, settling or otherwise dealing with claims against the Fidelity Fund, or incurred in relation to the Fidelity Fund, or in the proper exercise by the Company or any of its officers, employees or agents of any of the rights, powers and authorities vested in the Company by this Rule 52;

(d) all premiums payable in respect of contracts of insurance or indemnity entered into by the Company pursuant to Rule 52.19;

(e) expenses incurred in administering the Fidelity Fund, including the salaries and wages of persons employed by the Company in relation to the Fidelity Fund; and

(f) all other monies payable out of the Fidelity Fund in accordance with these Rules or any applicable legislation.

52.6 The Company shall establish and keep proper accounting records in respect of the Fidelity Fund and shall:

(a) cause a balance sheet in respect of the Fund to be made out at least once in every year as at the annual balance date of the Company; and

(b) cause its auditors to audit the annual accounts of the Fidelity Fund, and to prepare a report on the accounts which shall be laid before the Board at the next meeting of the Board held after completion of the audit.

52.7 (a) The Company may appoint a committee to be known as the Fidelity Fund Committee which shall consist of not less than three persons, at least two of whom are members of the Board.

(b) The Company may delegate to the Fidelity Fund Committee all or any of its powers, authorities and discretions under this Rule 52 other than this Rule 52.7 and may at any time vary or revoke any such delegation.

(c) The provisions of Rule 47 shall apply to the Fidelity Fund Committee.

(d) The Fidelity Fund Committee may from time to time, with the prior approval of the Company, appoint a manager to manage the investments of the Fidelity Fund under the control of the Fidelity Fund Committee and/or to carry out such of its other duties as the Fidelity Fund Committee from time to time thinks fit.

52.8 The Company may from time to time advance any sums to the Fidelity Fund upon such terms as it thinks fit. Moneys so advanced may at any time be repaid from the Fidelity Fund to the general funds of the Company.

52.9 (a) Any moneys in the Fidelity Fund that are not immediately required for its purposes may be invested in such manner as the Company or the Fidelity Fund Committee, as the case may be, from time to time thinks fit.