(1) Subject to subregulations (2) and (3), a share registry shall enter in the relevant register in the registry system in respect of any security a charge held by any person on the security.
(2) The authorisation for the entry of a charge under subregulation (1) shall be the delivery to the share registry of an approved form duly executed in accordance with regulation 18 by the holder of the security and the chargee.
(3) A share registry shall refuse to record a charge under subregulation (1) if it has actual notice that—
(a) the charge is prohibited by order of a court; or
(b) the charge is prohibited under an enactment; or
(c) the chargee is a deceased person; or
(d) in the case of a share, the company which issued the share has a lien on the share recorded under regulation 8 or has presented an approved form of lien to the share registry prior to the presentation of the approved form of charge.
(4) A share registry may refuse to record a charge if the charge is to an entity which is not a natural or legal person.
(5) Subject to any provisions to the contrary contained in the document creating any charge, charges shall have priority in order of the entry of the charge in the relevant register.
(6) The share registry shall remove the entry of any charge entered under subregulation (1) if it receives—
(a) from the chargee, an approved form of release of charge duly executed by the chargee in accordance with regulation 18;
(b) an order of the court requiring it to do so.
(7) An approved form of charge shall contain an acknowledgment by the chargor that—
(a) entry of the charge on the relevant register of securities will preclude any transfer by the chargor of the charged security, and
(b) the charge may not be removed without the consent of the chargee or under a court order; and
(c) if the chargee enforces the charge he or she may be entered on the relevant register of securities as holder of the security in place of the chargor.
(8) Where under the terms of his or her agreement with the charger a chargee becomes entitled to enforce his or her charge in respect of any security the chargee may make and present to the share registry a statutory declaration in a form approved by the Commission and present the declaration to the share registry which shall, unless prohibited by an order of the court, enter the chargee on the relevant register of securities as holder of the security in place of the chargor.
(9) A chargor who is entered on a register of securities under subregulation (8) may sell and transfer the security in any manner provided in regulation 7 and the transferee shall thereby obtain clear title to the security without becoming concerned to ascertain whether or not the chargor was entitled to enforce the charge unless he or she has actual notice that the chargee is not so entitled.
(10) If a purchaser obtains clear title to a security under subregulation (9) any right which the chargor may have to any part of the proceeds of sale of the security shall be a personal right against the chargee.
(11) A share registry shall not be concerned to inquire whether a chargee has the right to enforce his or her charge and shall not be liable to the chargor or to any other person if it enters a chargee on a securities register as holder of any security where the chargee has complied with the provisions of subregulation (8).
(12) Subject to sub-regulation (13), a chargee may transfer a subsisting charge and the authorisation for the entry of a transfer of a charge shall be the delivery to the share registry by the holder of the charge and the transferee of an approved form executed in accordance with regulation 18.
(13) A share registry shall refuse to record a transfer of a charge under subregulation (12) if it has actual notice that the—
(a) transfer is prohibited by order of a court; or
(b) transfer is prohibited under an enactment; or
(c) transferee is a deceased person.
(14) A share registry may refuse to record the transfer of a charge if the transfer is to an entity which is not a natural or legal person.