TITLE 6A

Uniform Commercial Code

CHAPTER 6A-9

Secured Transactions

PART 6A-9-301

Perfection and Priority

SECTION 6A-9-328



   § 6A-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 § 6A-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 § 6A-9-106 rank according to priority in time of:



   (i) If the collateral is a security, obtaining control;



   (ii) If the collateral is a security entitlement carried in a

securities account and:



   (A) If the secured party obtained control under §

6A-8-106(d)(1), the secured party's becoming the person for which the

securities account is maintained;



   (B) If the secured party obtained control under §

6A-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



   (C) If the secured party obtained control through another

person under § 6A-8-106(d)(3), the time on which priority would be based

under this paragraph if the other person were the secured party; or



   (iii) If the collateral is a commodity contract carried with

a commodity intermediary, the satisfaction of the requirement for control

specified in § 6A-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 § 6A-9-313(a)

and not by control under § 6A-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 § 6A-9-106 rank equally.



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

interests in investment property is governed by §§ 6A-9-322 and

6A-9-323.



History of Section.

(P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.)