New York Uniform Commercial Code Law Section 9-206 - Security Interest Arising in Purchase or Delivery of Financial Asset.

Section 9--206. Security  Interest  Arising  in  Purchase or Delivery of
                Financial Asset.
(a) Security   interest   when   person   buys   through    securities
  intermediary.  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) Security interest secures obligation to pay for  financial  asset.
  The  security  interest described in subsection (a) secures the person's
  obligation to pay for the financial asset.
(c) Security interest  in  payment  against  delivery  transaction.  A
  security  interest  in  favor  of  a person that 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  indorsement  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) Security  interest  secures  obligation  to  pay for delivery. The
  security interest described in subsection (c) secures the obligation  to
  make payment for the delivery.

Last modified: February 3, 2019