TRANSFER OF GOVERNMENT STOCK. in the same way as the ticket in the case of ordinary registered securities. It is different in form from the ordinary ticket, in that the name of the transferor must be inserted by the ultimate selling member. The ticket is then taken to the Bank, where it is copied into a book kept for the purpose; the transferor signs this book, and also a receipt for the purchase-money, the signatures being witnessed by a clerk of the Bank. Transfers of government securities can be made at the Bank, without fee, on any business day except Saturday up to half-past two, if the ticket has been put forward before one o'clock, otherwise a fee of 2s. 6d. is charged. This fee is payable by the seller, but it may be claimed by him from the buyer if, owing to delay on the part of the latter, the ticket has not been passed to him at least ten minutes before one. On the transfer of Bank Stock a fee is always payable by the seller, amounting (inclusive of the transfer stamp of 7s. 9d.) to 9s. where the amount of stock transferred is 257. or under, and to 12s. where it is above that sum. By the custom of the Stock Exchange these fees are repaid by the purchaser to the transferor, if a jobber, where the amount of stock bought is under 5007. A formal identification of the transferor is always required by the Bank, and, therefore, where he is not personally known to them, he is usually accompanied and identified by a broker with whom they are acquainted. The receipt is handed over to the transferee, who is recommended, as a protection against fraud, to sign the book also, and thereby accept the transfer. This receipt is exempt from stamp duty. 2 On Saturdays no ticket can be put forward without a fee of 2s. 6d., and no transfer 123 Government certificates. Transfer of cost-book mining shares. Under the National Debt Act, 1870,1 a person who is entered in the books of the Bank as the holder of any of the Three per Cent. Annuities, may obtain a certificate with coupons annexed, payable to bearer, which would then be transferable without the formalities described above; or the certificate may be converted into a nominal certificate, by inserting the name of any person as the owner, and he alone is then recognized as such at the Bank. In the event of the loss or destruction of a stock certificate or coupon, a new one will be issued by the Bank, on receiving indemnity to their satisfaction. The same regulations are applicable to the other Government funds, also to the India stocks, and to the Metropolitan Board of Works stocks, with the exception that names cannot be inserted in certificates for India stocks. Shares in cost-book mining companies are ordinarily transferred by a document, in which the transferor acknowledges that he has transferred, and the transferee acknowledges that he has accepted, the shares mentioned. This document is signed by both parties, and forwarded to the purser by the transferee, and is the authority to the purser to register the transferee as a shareholder. By the Stamp Act 2 a duty of sixpence is imposed on such an authority, or on any notice of the transfer sent to the purser. 1 33 & 34 Vict. c. 71, Part V. CHAPTER VI. DEFAULTERS. of member. If a member of the Stock Exchange becomes unable Insolvency to fulfil his engagements in the House, he is declared a defaulter by direction of the chairman, deputychairman, or any two members of the Committee. The declaration of default is made publicly in the House, but was until lately not communicated in any way to the outside world, it being in fact open to doubt whether such a communication would not have amounted to a libel; the Committee are, however, now empowered by the rules to notify to the public the name of any member who has become a defaulter. It is also open to the defaulter, or his outside creditors, to institute proceedings in bankruptcy or liquidation in the ordinary manner. In either case he ceases ipso facto to be a member of the Stock Exchange, and thereby ceases to be under the jurisdiction of the Committee. It will be seen that the rules applicable in cases of default are only so far binding on the defaulter that he will not be readmitted as a member unless he, within fourteen days of his failure, deliver to the Official Assignee, or to his creditors, his original books of account, and, if required, give up the name of any principal indebted to him, and otherwise submit himself to the reasonable demands of his creditors. The creditors have also the usual power of making the debtor a bankrupt, although this is rarely done, it being more advantageous to both debtor and creditors that the Effect of declaration of default. Official Position of trustee in bankruptcy. estate should be wound up by the Official Assignee under the rules. It being prohibited by the rules for any member to be engaged in another business, the debts of a defaulter (with the exception of ordinary tradesmen's bills, for which, if there are any assets, provision is made) are confined to Stock Exchange debts and advances of money made to him by friends and relations, and it is therefore not so frequently the case as might be imagined that there are hostile creditors who are not bound by the rules, and who would proceed against the debtor in bankruptcy. The Official Assignee and his Deputy are appointed annually by the Committee. Their duty is to obtain from the defaulter his original books, of account, and a statement of the sums owing to and by him; to attend meetings of creditors, and to summon the defaulter before such meetings; to enter into a strict examination of every account; to investigate any bargains suspected to have been effected at unfair prices; and to manage the estate in conformity with the rules, regulations, and usages of the Stock Exchange. . The position of the trustee in bankruptcy was discussed in the case of Cooke,1 a member, who, on becoming unable to meet his engagements, and having been declared a defaulter, had handed over his assets to the official assignee for distribution among his Stock Exchange creditors. Cooke stated that he had no debts outside the Stock Exchange, and the official assignee thereupon apportioned the assets among the Stock Exchange creditors; but it afterwards appeared that he had outside debts, and he was declared a bankrupt. The trustee in the bankruptcy was held entitled to claim from the 1 Ex parte Saffery, 4 Ch. D. 555; 3 App. Cas. 213. Official Assignee a return of the assets handed to The assets, which formed the subject of discussion Assets. in that case, consisted mainly of a sum of money which stood to the credit of the debtor at his bank. It is to be observed that there is nothing in the rules relating to defaulters which calls upon them to hand over their bank balances; the rules relate to the collection and distribution only of differences, proceeds of stock in course of transit, surety money, and special funds created under specific rules alluded to below; all other payments made by the defaulter, such as that in the case cited, whether made under pressure or not, are voluntary payments, and can only be received by the Official Assignee with due regard to the bankruptcy laws. But it is submitted that it would be otherwise in the case of money collected by virtue of the rules. Proceeds of stock delivered and not paid for may, as we have seen, be followed; surety money and other special claims are payable only for specific application, and form an artificial fund which never belonged to the defaulter, but which is created by the rules, and only exists for the purpose of distribution in a particular way. On this principle it was held in Plumbly's case1 that the differences collected by the Official Assignee in a case of default do not form part of the assets of the defaulter so as to pass to the trustee in bankruptcy. In that case the defaulter was indebted to Right of differences. assignee to 1 Ex parte Grant, 13 Ch. D. 667. |