500-135 SDRT: principal charge: consideration payable in instalments
The following is taken from Manual, para. STSM031140.
‘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.
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’);