7. Safekeeping and Settlement

(1) Subject to the provisions of this section 7, safekeeping and settlement functions in relation to the Sovereign Bonds may take place on the facilities maintained either in or outside the AIFC and/or the Republic of Kazakhstan.

(2) Without prejudice to section 6 and to the extent that Sovereign Bonds have been admitted to trading on an Authorised Investment Exchange, such Authorised Investment Exchange may, in accordance with the AIFC Authorised Market Institutions Rules (AMI), the AIFC General Rules (GEN) and other applicable provisions of the Acting Law of the AIFC, appoint a settlement agent to carry out settlement and safekeeping functions (if any) in relation to transactions in Sovereign Bonds conducted on its facilities.

(3) The title to the Sovereign Bonds as well as settlement of the Sovereign Bonds on the books of the CSD and the settlement finality rules, shall in each case be governed by the Governing Law of the CSD and the rules, procedures and contracts of such CSD.

8. Securities Lending and Borrowing Program

(1) A CSD may include the Sovereign Bonds in its securities lending and borrowing programmes. The services rendered by a CSD and related to its securities lending and borrowing programmes shall be governed by the Governing Law of that CSD and the rules, procedures and contracts of such CSD.

9. Collateral Management

(1) The services rendered by a CSD in relation to collateral transactions with the Sovereign Bonds held in the system of that CSD shall be governed by the Governing Law of the CSD and the rules, procedures and contracts of such CSD.

10. Reporting and Liability

(1) The liability of the CSD appointed under these Rules, (or its Nominee), and(or) the directors, officers, employees and agents of such CSD (or Nominee), shall be governed by the Governing Law of the CSD and the rules, procedures and contracts of such CSD.

(2) The CSD appointed under section 6 will not be subject to any reporting requirements under the Acting Law of the AIFC.