§ 26-1-8.1-501 — Acquisition of security entitlements

Indiana § 26-1-8.1-501

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 8.1: Investment Securities

Text

(a) "Securities account" means an
account to which a financial asset is or may be credited in accordance
with an agreement under which the person maintaining the account
undertakes to treat the person for whom the account is maintained as
entitled to exercise the rights that comprise the financial asset.
(b) Except as otherwise provided in subsections (d) and (e), a person
acquires a security entitlement if a securities intermediary:
(1) indicates by book entry that a financial asset has been credited
to the person's securities account;
(2) receives a financial asset from the person or acquires a
financial asset for the person and, in either case, accepts it for
credit to the person's securities account; or
(3) becomes obligated under other law, regulation, or rule to
credit a financial asset to the person's securities account.
(c) If a condition of subsection (b) has been met, a person has a
security entitlement even though the securities intermediary does not
itself hold the financial asset.
(d) If a securities intermediary holds a financial asset for another
person, and the financial asset is registered in the name of, payable to
the order of, or specially endorsed to the other person, and has not been
endorsed to the securities intermediary or in blank, the other person is
treated as holding the financial asset directly rather than as having a
security entitlement with respect to the financial asset.
(e) Issuance of a security is not establishment of a security
entitlement.

Legislative History

As added by P.L.247-1995, SEC.10.