(1)The Board shall have a first and paramount lien upon all stocks registered in the name of each holder (whether solely or jointly with others) and upon the proceeds of sale thereof for all moneys in respect of such stocks and no equitable interest shall be created except upon the footing and conditions that this rule shall have full effect, and such lien shall extend to all interest from time to time paid in respect of such stocks. Unless otherwise agreed, the registration of a transfer of stocks shall operate as a waiver of the Board's lien, if any, on such stocks.(2)For the purpose of enforcing such lien, the Board may sell the stocks subject thereto in such a manner as the Board thinks fit but no sale shall be made unless a sum in respect of which the lien exists is payable and until notice in writing of the intention to sell shall have been served on such holder, his executors or administrators or other legal representatives, as the case may be, and default shall have been made by him or them in the payment of the sum payable, as aforesaid, for seven days after the date of such notice.(3)The proceeds of the sale shall be received by the Board and applied in or towards payment of such part of the amount in respect of which the lien exists as is presently payable and the residue, if any, shall be paid to such holder, his executors or administrators or other legal representatives, as the case may be.
