Indiana § 26-1-8.1-510 Purchaser for value of financial asset or security entitlement; adverse
claims

Indiana Statutes

§ 26-1-8.1-510 — Purchaser for value of financial asset or security entitlement; adverse claims

Indiana § 26-1-8.1-510

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 8.1Investment Securities

This text of Indiana § 26-1-8.1-510 (Purchaser for value of financial asset or security entitlement; adverse claims) 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 § 26-1-8.1-510 (2026).

Text

(a)In a case not covered by the priority rules in IC 26-1-9.1 or the rules stated in subsection (c), 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.

(b)If an adverse claim could not have been asserted against an entitlement holder under IC 26-1-8.1-502, the adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest therein, from the entitlement holder.

(c)In a case not covered by the priority rules in I

Free access — add to your briefcase to read the full text and ask questions with AI

(a) In a case not covered by the priority
rules in IC 26-1-9.1 or the rules stated in subsection (c), 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.
(b) If an adverse claim could not have been asserted against an
entitlement holder under IC 26-1-8.1-502, the adverse claim cannot be
asserted against a person who purchases a security entitlement, or an
interest therein, from the entitlement holder.
(c) In a case not covered by the priority rules in IC 26-1-9.1, a
purchaser for value of a security 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 (d), purchasers who have control rank according
to priority in time of:
(1) 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 IC 26-1-8.1-106(d)(1);
(2) 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 IC 26-1-8.1-106(d)(2); or
(3) if the purchaser obtained control through another person under
IC 26-1-8.1-106(d)(3), the time on which priority would be based
under this subsection if the other person were the secured party.
(d) A securities intermediary as purchaser has priority over a
conflicting purchaser who has control unless otherwise agreed by the
securities intermediary.