§ 6A-8-501 - Securities account – Acquisition of security entitlement from securities intermediary.
SECTION 6A-8-501
§ 6A-8-501 Securities account –Acquisition of security entitlement from securities intermediary. – (a) "Securities account" means an account to which a financial asset is or maybe credited in accordance with an agreement under which the person maintainingthe account undertakes to treat the person for whom the account is maintainedas entitled to exercise the rights that comprise the financial asset.
(b) Except as otherwise provided in subsections (d) and (e),a person acquires a security entitlement if a securities intermediary:
(1) indicates by book entry that a financial asset has beencredited to the person's securities account;
(2) receives a financial asset from the person or acquires afinancial asset for the person and, in either case, accepts it for credit tothe person's securities account; or
(3) becomes obligated under other law, regulation, or rule tocredit a financial asset to the person's securities account.
(c) If a condition of subsection (b) has been met, a personhas a security entitlement even though the securities intermediary does notitself hold the financial asset.
(d) If a securities intermediary holds a financial asset foranother person, and the financial asset is registered in the name of, payableto the order of, or specially indorsed to the other person, and has not beenindorsed to the securities intermediary or in blank, the other person istreated as holding the financial asset directly rather than as having asecurity entitlement with respect to the financial asset.
(e) Issuance of a security is not establishment of a securityentitlement.