Authorisation to dispose of ownership

(1) A declaration by which the custodian is authorised to appropriate the entrusted securities to itself or to transfer ownership of them to a third party, and is then obliged only to return securities of the same kind, must be given expressly and in text form for the particular custody transaction. The declaration must express that, upon exercise of the authorisation, ownership is to pass to the custodian or a third party, and that consequently only a contractual claim to delivery of securities determined by kind and number arises for the depositor. The declaration may neither refer to other documents nor be combined with other declarations of the depositor.
(2) Where the custodian appropriates the securities to itself or transfers ownership of them to a third party, the provisions of this Division cease to apply to such a custody transaction from that time.