104.9206 - Security interest arising in purchase or delivery of financial asset.

104.9206  Security interest arising in purchase or delivery of financial asset.

      1.  A security interest in favor of a securities intermediary attaches to a person’s security entitlement if:

      (a) 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

      (b) The securities intermediary credits the financial asset to the person’s securities account before he or she pays the securities intermediary.

      2.  The security interest described in subsection 1 secures the buyer’s obligation to pay for the financial asset.

      3.  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:

      (a) The security or other financial asset:

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

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

      (b) The agreement calls for delivery against payment.

      4.  The security interest described in subsection 3 secures the obligation to make payment for the delivery.

      (Added to NRS by 1999, 297)