§ 6A-8-106 - Control.
SECTION 6A-8-106
§ 6A-8-106 Control. – (a) A purchaser has "control" of a certificated security in bearer form if thecertificated security is delivered to the purchaser.
(b) A purchaser has "control" of a certificated security inregistered form if the certificated security is delivered to the purchaser, and:
(1) the certificate is indorsed to the purchaser or in blankby an effective indorsement; or
(2) the certificate is registered in the name of thepurchaser, upon original issue or registration of transfer by the issuer.
(c) A purchaser has "control" of an uncertificated securityif:
(1) the uncertificated security is delivered to thepurchaser; or
(2) the issuer has agreed that it will comply withinstructions originated by the purchaser without further consent by theregistered owner.
(d) A purchaser has "control" of a security entitlement if:
(1) the purchaser becomes the entitlement holder;
(2) the securities intermediary has agreed that it willcomply with entitlement orders originated by the purchaser without furtherconsent by the entitlement holder; or
(3) another person has control of the security entitlement onbehalf of the purchaser or, having previously acquired control of the securityentitlement, acknowledges that it has control on behalf of the purchaser.
(e) If an interest in a security entitlement is granted bythe entitlement holder to the entitlement holder's own securities intermediary,the securities intermediary has control.
(f) A purchaser who has satisfied the requirements ofsubsection (c) or (d) has control even if the registered owner in the case ofsubsection (c) or the entitlement holder in the case of subsection (d) retainsthe right to make substitutions for the uncertificated security or securityentitlement, to originate instructions or entitlement orders to the issuer orsecurities intermediary, or otherwise to deal with the uncertificated securityor security entitlement.
(g) An issuer or a securities intermediary may not enter intoan agreement of the kind described in subsection (c)(2) or (d)(2) without theconsent of the registered owner or entitlement holder, but an issuer or asecurities intermediary is not required to enter into such an agreement eventhough the registered owner or entitlement holder so directs. An issuer orsecurities intermediary that has entered into such an agreement is not requiredto confirm the existence of the agreement to another party unless requested todo so by the registered owner or entitlement holder.