§9-1328. Priority of security interests in investment property






The following rules govern priority among conflicting security interests in the same
investment property. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]








(1). 
 
A security interest held by a secured party having control of investment property
under section 9-1106 has priority over a security interest held by a secured party
that does not have control of the investment property.


[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]








(2). 
 
Except as otherwise provided in subsections (3) and (4), conflicting security interests
held by secured parties each of which has control under section 9-1106 rank according
to priority in time of:





(a). If the collateral is a security, obtaining control; [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]











(b). If the collateral is a security entitlement carried in a securities account and:



(i) If the secured party obtained control under section 8-1106, subsection (4),
paragraph (a), the secured party's becoming the person for which the securities account
is maintained;






(ii) If the secured party obtained control under section 8-1106, subsection (4),
paragraph (b), 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
8-1106, subsection (4), paragraph (c), the time on which priority would be based under
this paragraph if the other person were the secured party; or [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]














(c). If the collateral is a commodity contract carried with a commodity intermediary,
the satisfaction of the requirement for control specified in section 9-1106, subsection
(2), paragraph (b) with respect to commodity contracts carried or to be carried with
the commodity intermediary. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]








[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]








(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.


[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]








(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.


[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]








(5). 
 
A security interest in a certificated security in registered form that is perfected
by taking delivery under section 9-1313, subsection (1) and not by control under section
9-1314 has priority over a conflicting security interest perfected by a method other
than control.


[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]








(6). 
 
Conflicting security interests created by a broker, securities intermediary or commodity
intermediary that are perfected without control under section 9-1106 rank equally.


[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]








(7). 
 
In all other cases, priority among conflicting security interests in investment
property is governed by sections 9-1322 and 9-1323.


[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]





SECTION HISTORY

1999, c. 699, §A2 (NEW).
1999, c. 699, §A4 (AFF).