§ 6A-8-511 - Priority among security interests and entitlement holders.
SECTION 6A-8-511
§ 6A-8-511 Priority among securityinterests and entitlement holders. – (a) Except as otherwise provided in subsections (b) and (c), if a securitiesintermediary does not have sufficient interests in a particular financial assetto satisfy both its obligations to entitlement holders who have securityentitlements to that financial asset and its obligation to a creditor of thesecurities intermediary who has a security interest in that financial asset,the claims of entitlement holders, other than the creditor, have priority overthe claim of the creditor.
(b) A claim of a creditor of a securities intermediary whohas a security interest in a financial asset held by a securities intermediaryhas priority over claims of the securities intermediary's entitlement holderswho have security entitlements with respect to that financial asset if thecreditor has control over the financial asset.
(c) If a clearing corporation does not have sufficientfinancial assets to satisfy both its obligations to entitlement holders whohave security entitlements with respect to a financial asset and its obligationto a creditor of the clearing corporation who has a security interest in thatfinancial asset, the claim of the creditor has priority over the claims ofentitlement holders.