Interest in favor of securities intermediary--Interest in favor of person who delivers financial asset.

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57A-9-206. Interest in favor of securities intermediary--Interest in favor of person who delivers financial asset.

(a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if:

(1)The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and

(2)The securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary .

(b) The security interest described in subsection (a) secures the person's obligation to pay for the financial asset.

(c) A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:

(1)The security or other financial asset:

(A)In the ordinary course of business is transferred by delivery with any necessary indorsement or assignment; and

(B)Is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and

(2)The agreement calls for delivery against payment.

(d) The security interest described in subsection (c) secures the obligation to make payment for the delivery.

Source: SL 2000, ch 231.


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