8.8A-510 - A-510. Rights of purchaser of security entitlement from entitlement holder.
§ 8.8A-510. Rights of purchaser of security entitlement from entitlementholder.
(a) In a case not covered by the priority rules in Title 8.9A or the rulesstated in subsection (c), an action based on an adverse claim to a financialasset or security entitlement, whether framed in conversion, replevin,constructive trust, equitable lien, or other theory, may not be assertedagainst a person who purchases a security entitlement, or an interesttherein, from an entitlement holder if the purchaser gives value, does nothave notice of the adverse claim, and obtains control.
(b) If an adverse claim could not have been asserted against an entitlementholder under § 8.8A-502, the adverse claim cannot be asserted against aperson who purchases a security entitlement, or an interest therein, from theentitlement holder.
(c) In a case not covered by the priority rules in Title 8.9A, a purchaserfor value of a security entitlement, or an interest therein, who obtainscontrol has priority over a purchaser of a security entitlement, or aninterest therein, who does not obtain control. Except as otherwise providedin subsection (d), purchasers who have control rank according to priority intime of:
(1) the purchaser's becoming the person for whom the securities account, inwhich the security entitlement is carried, is maintained, if the purchaserobtained control under subdivision (d) (1) of § 8.8A-106;
(2) the securities intermediary's agreement to comply with the purchaser'sentitlement orders with respect to security entitlements carried or to becarried in the securities account in which the security entitlement iscarried, if the purchaser obtained control under subdivision (d) (2) of §8.8A-106; or
(3) if the purchaser obtained control through another person undersubdivision (d) (3) of § 8.8A-106, the time on which priority would be basedunder this subsection if the other person were the secured party.
(d) A securities intermediary as purchaser has priority over a conflictingpurchaser who has control unless otherwise agreed by the securitiesintermediary.
(1996, c. 216; 2000, c. 1007.)