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 4-9-106 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) of this section,
conflicting security interests held by secured parties each of which has control
under section 4-9-106 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 4-8-106 (d)(1), the
secured party's becom
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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 4-9-106 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) of this section,
conflicting security interests held by secured parties each of which has control
under section 4-9-106 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 4-8-106 (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 4-8-106 (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 4-8-106 (d)(3), the time on which priority would be based under this
paragraph (2) 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 4-9-106 (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 4-9-313 (a) and not by control under
section 4-9-314 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 4-9-106 rank equally.
(7) In all other cases, priority among conflicting security interests in
investment property is governed by sections 4-9-322 and 4-9-323.