TITLE 6A

Uniform Commercial Code

CHAPTER 6A-8

Investment Securities

PART 6A-8-501

Security Entitlements

SECTION 6A-8-511



   § 6A-8-511  Priority among security

interests and entitlement holders. –

(a) Except as otherwise provided in subsections (b) and (c), if a securities

intermediary does not have sufficient interests in a particular financial asset

to satisfy both its obligations to entitlement holders who have security

entitlements to that financial asset and its obligation to a creditor of the

securities intermediary who has a security interest in that financial asset,

the claims of entitlement holders, other than the creditor, have priority over

the claim of the creditor.



   (b) A claim of a creditor of a securities intermediary who

has a security interest in a financial asset held by a securities intermediary

has priority over claims of the securities intermediary's entitlement holders

who have security entitlements with respect to that financial asset if the

creditor has control over the financial asset.



   (c) If a clearing corporation does not have sufficient

financial assets to satisfy both its obligations to entitlement holders who

have security entitlements with respect to a financial asset and its obligation

to a creditor of the clearing corporation who has a security interest in that

financial asset, the claim of the creditor has priority over the claims of

entitlement holders.



History of Section.

(P.L. 2000, ch. 182, § 5; P.L. 2000, ch. 420, § 5.)