Arrangements are sometimes made to pay for shares which are to be delivered to a depositary receipt issuer or clearance service (or their respective nominees) in periodic instalments, typically under an agreement between the seller, the purchaser and a custodian bank (FA86/93(6) & FA86/96(4)).

Under the terms of the agreement:

the shares are registered in the name of the custodian bank

letters of acceptance set out the purchaser's rights and obligations in relation to the shares (‘interim rights’)

the letters of acceptance are renounceable within a limited period (‘renunciation period’)

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