(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 a 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 division (A) of this section secures the person's obligation to pay for the financial asset.
(C) 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) The security interest described in division (C) of this section secures the obligation to make payment for the delivery.
Effective Date: 07-01-2001
Section: Previous 1309.109 1309.110 1309.201 1309.202 1309.203 1309.204 1309.205 1309.206 1309.207 1309.208 1309.209 1309.210 1309.301 1309.302 1309.303 NextLast modified: October 10, 2016