Indiana § 26-1-8.1-503 Property interests in financial assets; enforcement of property rights;
purchasers for value

Indiana Statutes

§ 26-1-8.1-503 — Property interests in financial assets; enforcement of property rights; purchasers for value

Indiana § 26-1-8.1-503

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 8.1Investment Securities

This text of Indiana § 26-1-8.1-503 (Property interests in financial assets; enforcement of property rights; purchasers for value) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-8.1-503 (2026).

Text

(a)To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in IC 26-1-8.1-511.

(b)An entitlement holder's property interest with respect to a particular financial asset under subsection (a) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermedia

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(a) To the extent necessary for a
securities intermediary to satisfy all security entitlements with respect
to a particular financial asset, all interests in that financial asset held by
the securities intermediary are held by the securities intermediary for
the entitlement holders, are not property of the securities intermediary,
and are not subject to claims of creditors of the securities intermediary,
except as otherwise provided in IC 26-1-8.1-511.
(b) An entitlement holder's property interest with respect to a
particular financial asset under subsection (a) is a pro rata property
interest in all interests in that financial asset held by the securities
intermediary, without regard to the time the entitlement holder acquired
the security entitlement or the time the securities intermediary acquired
the interest in that financial asset.
(c) An entitlement holder's property interest with respect to a
particular financial asset under subsection (a) may be enforced against
the securities intermediary only by exercise of the entitlement holder's
rights under IC 26-1-8.1-505 through IC 26-1-8.1-508.
(d) An entitlement holder's property interest with respect to a
particular financial asset under subsection (a) may be enforced against
a purchaser of the financial asset or interest therein only if:
(1) insolvency proceedings have been initiated by or against the
securities intermediary;
(2) the securities intermediary does not have sufficient interests
in the financial asset to satisfy the security entitlements of all of
its entitlement holders to that financial asset;
(3) the securities intermediary violated its obligations under IC 26-1-8.1-504 by transferring the financial asset or interest therein
to the purchaser; and
(4) the purchaser is not protected under subsection (e).
The trustee or other liquidator, acting on behalf of all entitlement
holders having security entitlements with respect to a particular
financial asset, may recover the financial asset, or interest therein, from
the purchaser. If the trustee or other liquidator elects not to pursue that
right, an entitlement holder whose security entitlement remains
unsatisfied has the right to recover its interest in the financial asset
from the purchaser.
(e) An action based on the entitlement holder's property interest
with respect to a particular financial asset under subsection (a),
whether framed in conversion, replevin, constructive trust, equitable
lien, or other theory, may not be asserted against any purchaser of a
financial asset or interest therein who gives value, obtains control, and
does not act in collusion with the securities intermediary in violating
the securities intermediary's obligations under IC 26-1-8.1-504.