Sec. 42a-9-328. Priority of security interests in investment property.
Sec. 42a-9-328. Priority of security interests in investment property. The following rules govern priority among conflicting security interests in the same investment
property:
(1) A security interest held by a secured party having control of investment property
under section 42a-9-106 has priority over a security interest held by a secured party that
does not have control of the investment property.
(2) Except as otherwise provided in subdivisions (3) and (4), conflicting security
interests held by secured parties each of which has control under section 42a-9-106 rank
according to priority in time of:
(A) If the collateral is a security, obtaining control;
(B) If the collateral is a security entitlement carried in a securities account; and:
(i) If the secured party obtained control under subdivision (1) of subsection (d) of
section 42a-8-106, the secured party's becoming the person for which the securities
account is maintained;
(ii) If the secured party obtained control under subdivision (2) of subsection (d) of
section 42a-8-106, the securities intermediary's agreement to comply with the secured
party's entitlement orders with respect to security entitlements carried or to be carried
in the securities account; or
(iii) If the secured party obtained control through another person under subdivision
(3) of subsection (d) of section 42a-8-106, the time on which priority would be based
under this subdivision if the other person were the secured party; or
(C) If the collateral is a commodity contract carried with a commodity intermediary,
the satisfaction of the requirement for control specified in subdivision (2) of subsection
(b) of section 42a-9-106 with respect to commodity contracts carried or to be carried
with the commodity intermediary.
(3) A security interest held by a securities intermediary in a security entitlement
or a securities account maintained with the securities intermediary has priority over a
conflicting security interest held by another secured party.
(4) A security interest held by a commodity intermediary in a commodity contract
or a commodity account maintained with the commodity intermediary has priority over
a conflicting security interest held by another secured party.
(5) A security interest in a certificated security in registered form which is perfected
by taking delivery under subsection (a) of section 42a-9-313 and not by control under
section 42a-9-314 has priority over a conflicting security interest perfected by a method
other than control.
(6) Conflicting security interests created by a broker, securities intermediary or
commodity intermediary which are perfected without control under section 42a-9-106
rank equally.
(7) In all other cases, priority among conflicting security interests in investment
property is governed by sections 42a-9-322 and 42a-9-323.
(P.A. 01-132, S. 48.)