8.8A-501 - A-501. Securities account; acquisition of security entitlement from securities intermediary.
§ 8.8A-501. Securities account; acquisition of security entitlement fromsecurities intermediary.
(a) "Securities account" means an account to which a financial asset is ormay be credited in accordance with an agreement under which the personmaintaining the account undertakes to treat the person for whom the accountis maintained as entitled to exercise the rights that comprise the financialasset.
(b) Except as otherwise provided in subsections (d) and (e), a personacquires a security entitlement if a securities intermediary:
(1) indicates by book entry that a financial asset has been credited to theperson's securities account;
(2) receives a financial asset from the person or acquires a financial assetfor the person and, in either case, accepts it for credit to the person'ssecurities account; or
(3) becomes obligated under other law, regulation, or rule to credit afinancial asset to the person's securities account.
(c) If a condition of subsection (b) has been met, a person has a securityentitlement even though the securities intermediary does not itself hold thefinancial asset.
(d) If a securities intermediary holds a financial asset for another person,and the financial asset is registered in the name of, payable to the orderof, or specially endorsed to the other person, and has not been endorsed tothe securities intermediary or in blank, the other person is treated asholding the financial asset directly rather than as having a securityentitlement with respect to the financial asset.
(e) Issuance of a security is not establishment of a security entitlement.
(1996, c. 216.)