8.9A-328 - A-328. Priority of security interests in investment property.
§ 8.9A-328. Priority of security interests in investment property.
The following rules govern priority among conflicting security interests inthe same investment property:
(1) A security interest held by a secured party having control of investmentproperty under § 8.9A-106 has priority over a security interest held by asecured party that does not have control of the investment property.
(2) Except as otherwise provided in paragraphs (3) and (4), conflictingsecurity interests held by secured parties each of which has control under §8.9A-106 rank according to priority in time of:
(A) if the collateral is a security, obtaining control;
(B) if the collateral is a security entitlement carried in a securitiesaccount and:
(i) if the secured party obtained control under § 8.8A-106 (d) (1), thesecured party's becoming the person for which the securities account ismaintained;
(ii) if the secured party obtained control under § 8.8A-106 (d) (2), thesecurities intermediary's agreement to comply with the secured party'sentitlement orders with respect to security entitlements carried or to becarried in the securities account; or
(iii) if the secured party obtained control through another person under §8.8A-106 (d) (3), the time on which priority would be based under thisparagraph if the other person were the secured party; or
(C) if the collateral is a commodity contract carried with a commodityintermediary, the satisfaction of the requirement for control specified in §8.9A-106 (b) (2) with respect to commodity contracts carried or to be carriedwith the commodity intermediary.
(3) A security interest held by a securities intermediary in a securityentitlement or a securities account maintained with the securitiesintermediary has priority over a conflicting security interest held byanother secured party.
(4) A security interest held by a commodity intermediary in a commoditycontract or a commodity account maintained with the commodity intermediaryhas priority over a conflicting security interest held by another securedparty.
(5) A security interest in a certificated security in registered form whichis perfected by taking delivery under § 8.9A-313 (a) and not by control under§ 8.9A-314 has priority over a conflicting security interest perfected by amethod other than control.
(6) Conflicting security interests created by a broker, securitiesintermediary, or commodity intermediary which are perfected without controlunder § 8.9A-106 rank equally.
(7) In all other cases, priority among conflicting security interests ininvestment property is governed by §§ 8.9A-322 and 8.9A-323.
(1996, c. 216, § 8.9-115; 2000, c. 1007.)