Missouri Revised Statutes













Chapter 400

Uniform Commercial Code

←400.09-327

Section 400.9-328.1

400.09-329→

August 28, 2015

Priority in security interests in investment property.

400.9-328. 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 400.9-106 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 400.9-106 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 400.8-106(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 400.8-106(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 400.8-106(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 400.9-106(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 400.9-313(a) and not by

control under section 400.9-314 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 400.9-106 rank equally.



(7) In all other cases, priority among conflicting security interests in

investment property is governed by sections 400.9-322 and 400.9-323.



(L. 2001 S.B. 288)



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