8.9A-206 - A-206. Security interest arising in purchase or delivery of financial asset.
§ 8.9A-206. Security interest arising in purchase or delivery of financialasset.
(a) Security interest when person buys through securities intermediary. Asecurity interest in favor of a securities intermediary attaches to aperson's security entitlement if:
(1) the person buys a financial asset through the securities intermediary ina transaction in which the person is obligated to pay the purchase price tothe securities intermediary at the time of the purchase; and
(2) the securities intermediary credits the financial asset to the buyer'ssecurities account before the buyer pays the securities intermediary.
(b) Security interest secures obligation to pay for financial asset. Thesecurity interest described in subsection (a) secures the person's obligationto pay for the financial asset.
(c) Security interest in payment against delivery transaction. A securityinterest in favor of a person that delivers a certificated security or otherfinancial asset represented by a writing attaches to the security or otherfinancial asset if:
(1) the security or other financial asset:
(A) in the ordinary course of business is transferred by delivery with anynecessary endorsement or assignment; and
(B) is delivered under an agreement between persons in the business ofdealing with such securities or financial assets; and
(2) the agreement calls for delivery against payment.
(d) Security interest secures obligation to pay for delivery. The securityinterest described in subsection (c) secures the obligation to make paymentfor the delivery.
(1996, c. 216, § 8.9-116; 2000, c. 1007.)