§ 25-9-206. Security interest arising in purchase or delivery of financial asset.
§25‑9‑206. Security interest arising in purchase or delivery offinancial asset.
(a) Security interestwhen person buys through securities intermediary. A security interest infavor of a securities intermediary attaches to a person's security entitlementif:
(1) The person buys afinancial asset through the securities intermediary in a transaction in whichthe person is obligated to pay the purchase price to the securitiesintermediary at the time of the purchase; and
(2) The securitiesintermediary credits the financial asset to the buyer's securities accountbefore the buyer pays the securities intermediary.
(b) Security interestsecures obligation to pay for financial asset. The security interestdescribed in subsection (a) of this section secures the person's obligation topay for the financial asset.
(c) Security interestin payment against delivery transaction. A security interest in favor of aperson that delivers a certificated security or other financial assetrepresented by a writing attaches to the security or other financial asset if:
(1) The security orother financial asset:
a. In the ordinarycourse of business is transferred by delivery with any necessary indorsement orassignment; and
b. Is delivered underan agreement between persons in the business of dealing with such securities orfinancial assets; and
(2) The agreement callsfor delivery against payment.
(d) Security interestsecures obligation to pay for delivery. The security interest described insubsection (c) of this section secures the obligation to make payment for thedelivery. (1997‑181, s. 6; 2000‑169, s. 1.)