Article 19
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A CSDE, upon accepting securities deposited by a participant, shall record immediately necessary information on the participant's account books.
Where a CSDE believes that securities delivered by a participant are either defective in rights, or subject to legal dispute or any other dispute regarding validity of such securities, the CSDE may refuse to accept such securities. If such defects are discovered after the securities are deposited, the CSDE may either return such securities to the participant or notify the said participant to replace them with non-defective securities.
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