Iowa § 554.8510 Rights of purchaser of security entitlement from entitlement holder

Iowa Statutes

§ 554.8510 — Rights of purchaser of security entitlement from entitlement holder

Iowa § 554.8510

Title XIIICOMMERCE

Ch. 554UNIFORM COMMERCIAL CODE

This text of Iowa § 554.8510 (Rights of purchaser of security entitlement from entitlement holder) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 554.8510 (2026).

Text

1.In a case not covered by the priority rules in Article 9 or the rules stated in subsection 3, an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who purchases a security entitlement, or an interest therein, from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim, and obtains control.

2.If an adverse claim could not have been asserted against an entitlement holder under section 554.8502, the adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest therein, from the entitlement holder.

3.InacasenotcoveredbythepriorityrulesinArticle9, apurcha

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1. In a case not covered by the priority rules in Article 9 or the rules stated in subsection
3, an action based on an adverse claim to a financial asset or security entitlement, whether
framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be
asserted against a person who purchases a security entitlement, or an interest therein, from
an entitlement holder if the purchaser gives value, does not have notice of the adverse claim,
and obtains control.
2. If an adverse claim could not have been asserted against an entitlement holder under
section 554.8502, the adverse claim cannot be asserted against a person who purchases a
security entitlement, or an interest therein, from the entitlement holder.
3. InacasenotcoveredbythepriorityrulesinArticle9, apurchaserforvalueofasecurity
entitlement, or an interest therein, who obtains control has priority over a purchaser of a

security entitlement, or an interest therein, who does not obtain control. Except as otherwise
provided in subsection 4, purchasers who have control rank according to priority in time of:
a. the purchaser’s becoming the person for whom the securities account, in which the
security entitlement is carried, is maintained, if the purchaser obtained control under section
554.8106, subsection 4, paragraph “a”;
b. the securities intermediary’s agreement to comply with the purchaser’s entitlement
orders with respect to security entitlements carried or to be carried in the securities account
in which the security entitlement is carried, if the purchaser obtained control under section
554.8106, subsection 4, paragraph “b”;
c. if the purchaser obtained control through another person under section 554.8106,
subsection 4, paragraph “c”, the time on which priority would be based under this subsection
if the other person were the secured party; or
4. A securities intermediary as purchaser has priority over a conflicting purchaser who
has control unless otherwise agreed by the securities intermediary.