(1) A depositary shall be liable to the UCITS and to the unitholders in the UCITS for the loss of a financial instrument held in custody by the depositary or a third party to whom the custody of financial instruments held in custody in accordance with paragraph (4)(a) of Regulation 34 has been delegated.
(2) Where a financial instrument held in custody is lost, the depositary shall return a financial instrument of an identical type or the corresponding amount to the UCITS or the management company acting on behalf of the UCITS without undue delay.
(3) The depositary shall not be liable for a loss under paragraph (1) if it can prove that the loss has arisen as a result of an external event beyond its reasonable control, the consequences of which would have been unavoidable despite all reasonable efforts to the contrary.
(4) The depositary shall be liable to the UCITS and the unit-holders of the UCITS, for all other losses suffered by them as a result of the depositary's negligent or int
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