Legal encyclopedia. Letter D

DEPOSITORY AGREEMENT

Is the basis for the emergence of the rights and obligations of the client (depositor) and the depositary in the provision of services to the client by the depositary.

The subject of DD is the provision by the depository of the client (depositor) of services for the storage of securities certificates, registration and certification of rights to securities by opening and keeping the custody account of the client (depositor) with the depositary, and performing transactions on this account. The subject of D.D. is also the provision by the depository of services that facilitate the exercise by holders of securities of rights over their securities.

At the same time, the depositary provides services for the storage of securities certificates, accounting and certification of rights to securities, if securities are issued in documentary form. If securities are issued in uncertificated form, the depositary renders services in accounting and certification of rights to securities.

DD must be concluded in a simple written form.

DD must contain the following conditions:

1) an unambiguous definition of the subject D.D .;

2) the procedure for the transfer by the client (depositor) of the depositary of orders for the disposal of securities of the client (depositor) that are stored and (or) the rights to which are recorded in the depository;

3) the obligations of the depositary to fulfill the orders of the client (depositor), the timing of the execution of instructions;

4) the procedure for the provision by the depositary of services related to assistance in the exercise by holders of rights in securities, including by transferring relevant information and documents from the owner to the issuer and the registrar and from the issuer and the registrar to the holder;

5) DD's validity period, grounds and procedure for its change and termination, including the right of the client (depositor) to terminate the deposit with DD unilaterally;

6) the procedure and form of reporting of the depository to the client (depositor);

7) the amount and procedure of payment for the services of the depositary.

An integral part of the DD is the conditions approved by the depositary

Implementation of depository activities.

In addition to the above conditions, DD may contain other conditions that do not contradict the legislation of the Russian Federation.

At the conclusion of D.D. from the client (depositor) is not required immediate deposit of securities.

In the event that the client (depositor) of the depository is another depository, the AD between them is called the inter-depository relationship agreement. In this case, the registration and certification of securities of clients (depositors) of the depositary-depositor is conducted on the whole set of data, without breakdown by individual clients (depositors), and the depositary-depositor performs the functions of the nominal holder of securities of its clients (depositors).

The agreement on interdepository relations, in addition to the above conditions, should provide for the procedure for obtaining information on securities owners, which are recorded in the depositary depositor. In this case, the depository, in which the account of another depositary is opened, is not responsible for the correctness and

Reliability of this information, and is responsible only for the correctness of its transfer to third parties.

The agreement on interdepository relations should also provide for the duty of reconciling depository data on the securities of customers (depositors), as well as the order and timing of the reconciliation.