(a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if
(1) the person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and
(2) the securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.
(b) The security interest described in (a) of this section secures the person's obligation to pay for the financial asset.
(c) A security interest in favor of a person who delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if
(1) the security or other financial asset
(A) in the ordinary course of business, is transferred by delivery with any necessary endorsement or assignment; and
(B) is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and
(2) the agreement calls for delivery against payment.
(d) The security interest described in (c) of this section secures the obligation to make payment for the delivery.
Section: Previous 45.29.201 45.29.202 45.29.203 45.29.204 45.29.205 45.29.206 45.29.207 45.29.208 45.29.209 45.29.210 NextLast modified: November 15, 2016