§490:9-328  Priority of security interests

in investment property.  The following rules govern priority among

conflicting security interests in the same investment property:

     (1)  A security interest held by a secured party

having control of investment property under section 490:9-106 has priority over

a security interest held by a secured party that does not have control of the

investment property.

     (2)  Except as otherwise provided in paragraphs (3)

and (4), conflicting security interests held by secured parties each of which

has control under section 490:9-106 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 securities account and:

              (i)  If the secured party obtained control under

section 490:8-106(d)(1), the secured party's becoming the person for which the

securities account is maintained;

             (ii)  If the secured party obtained control under

section 490:8-106(d)(2), the securities intermediary's agreement to comply with

the secured party's entitlement orders with respect to security entitlements

carried or to be carried in the securities account; or

            (iii)  If the secured party obtained control

through another person under section 490:8-106(d)(3), the time on which

priority would be based under this paragraph if the other person were the

secured party; or

         (C)  If the collateral is a commodity contract

carried with a commodity intermediary, the satisfaction of the requirement for

control specified in section 490:9-106(b)(2) with respect to commodity

contracts carried or to be carried with the commodity intermediary.

     (3)  A security interest held by a securities

intermediary in a security entitlement or a securities account maintained with

the securities intermediary has priority over a conflicting security interest

held by another secured party.

     (4)  A security interest held by a commodity

intermediary in a commodity contract or a commodity account maintained with the

commodity intermediary has priority over a conflicting security interest held

by another secured party.

     (5)  A security interest in a certificated security in

registered form which is perfected by taking delivery under section

490:9-313(a) and not by control under section 490:9-314 has priority over a

conflicting security interest perfected by a method other than control.

     (6)  Conflicting security interests created by a

broker, securities intermediary, or commodity intermediary which are perfected

without control under section 490:9-106 rank equally.

     (7)  In all other cases, priority among conflicting

security interests in investment property is governed by sections 490:9-322 and

490:9-323. [L 2000, c 241, pt of §1]