SECTION 14.3. Written Demand for Withdrawal or Delivery

(a) As provided by the depository account agreement, a depository account holder may request a withdrawal from the depository of a quantity of precious metal as is available in the depository account holder's depository account. A withdrawal request must be made using a form or format prescribed by the depository. The form or format prescribed by the depository may be electronic and must be submitted either on the depository website or in person to the depository or a depository agent as provided in the account agreement and in accordance with policies established by the depository. All requests for withdrawals must be made in units of troy ounces pure or other applicable weights and measures as established by the depository.

(b) Upon receipt of a withdrawal request by either the depository or depository agent, the depository shall make a delivery of the precious metals to the depository account holder within ten business days.

(c) The depository may deliver precious metals to the address the depository account holder designated as their address of record, the facility of the depository agent at which presentment was made, or at a facility designated by the depository.

(d) For the purposes of this chapter, the requirement to make a delivery of precious metals upon presentment of a suitable written demand within ten business days shall be considered met if the precious metals are shipped to the depository account holder's address of record or are otherwise made available for pick-up at the facility of the depository at which presentment was made or a facility designated by the depository on or before the tenth business day after the written demand is received by the depository.

(e) For the purposes of this section, if a withdrawal demand is made by a depository account holder whose withdrawal privileges have been suspended for non-payment of fees or is made in connection with the closure of a depository account, the obligation of the depository to make delivery of precious metals within ten business days shall only commence after all depository fees have been paid and any existing liens or pledges have been released.

(f) If a withdrawal demand made under this chapter would result in the value of precious metals held in the account to be less than the fees that have accrued as of the date of the withdrawal demand, the depository may request payment for the accrued fees and the obligation of the depository to make delivery of precious metals within ten business days shall only commence after all accrued depository fees and other charges have been paid. If the depository account holder does not pay the fees within ten business days, the depository may withhold from delivery an amount of precious metals sufficient to secure payment of any fees owed by the depository account holder as of the date of the withdrawal.

Source Note: The provisions of this §14.3 adopted to be effective December 27, 2017, 42 TexReg 7411; amended to be effective June 29, 2022, 47 TexReg 3694