A security is a document linked to a right in such a way that it cannot be asserted or transferred to another party without the certificate (Law of Obligations 965); a securitized right kept in a safe by the custodian bank. Book entry securities (securities without papers) are lodged with a central depositary (bank/fund management etc.) where they are kept in custody. The central depositary keeps securities accounts with the depositaries as beneficiaries; the depositaries keep accounts with the security holders as beneficiaries. The Federal Book Entry Securities Act (BEG) has created a new asset sui generis, the book entry security. According to the legal definition in Art. 3 BEG, book entry securities are fungible debt securities or membership rights vis-à-vis an emitter. These are credited to a securities account kept by a depositary (lit. a) and the account holder may dispose of them in compliance with the regulations in the BEG (lit. b). The most important element of this definition is the fact that the securities are credited to an account which is constitutive for both the creation (Art. 6) and the disposal (Art. 24) of book entry securities.
German: Bucheffekten (195)
Source: SFO D15 2010 m. e. E., 24.04.2010
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