Federal Act
on the Amendment of the Swiss Civil Code
(Part Five: The Code of Obligations)

¹ A ledger-based se­cur­ity is a right which, in ac­cord­ance with an agree­ment between the parties:

1.

is re­gistered in a se­cur­it­ies ledger in ac­cord­ance with para­graph 2; and

2.

may be ex­er­cised and trans­ferred to oth­ers only via this se­cur­it­ies ledger.

² The se­cur­it­ies ledger must meet the fol­low­ing re­quire­ments:

1.

It uses tech­no­lo­gic­al pro­cesses to give the cred­it­ors, but not the ob­lig­or, power of dis­pos­al over their rights.

2.

Its in­teg­rity is se­cured through ad­equate tech­nic­al and or­gan­isa­tion­al meas­ures, such as joint man­age­ment by sev­er­al in­de­pend­ent par­ti­cipants, to pro­tect it from un­au­thor­ised modi­fic­a­tion.

3.

The con­tent of the rights, the func­tion­ing of the ledger and the re­gis­tra­tion agree­ment are re­cor­ded in the ledger or in linked ac­com­pa­ny­ing data.

4.

Cred­it­ors can view rel­ev­ant in­form­a­tion and ledger entries, and check the in­teg­rity of the ledger con­tents re­lat­ing to them­selves without in­ter­ven­tion by a third party.

³ The ob­lig­or must en­sure that the se­cur­it­ies ledger is or­gan­ised in ac­cord­ance with its in­ten­ded pur­pose. In par­tic­u­lar, it must be en­sured that the ledger op­er­ates in ac­cord­ance with the re­gis­tra­tion agree­ment at all times.