§ 26-1-8.1-511 — Priority of claims in financial asset

Indiana § 26-1-8.1-511

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

Text

(a) Except as otherwise provided in
subsections (b) and (c), if a securities intermediary does not have
sufficient interests in a particular financial asset to satisfy both its
obligations to entitlement holders who have security entitlements to
that financial asset and its obligation to a creditor of the securities
intermediary who has a security interest in that financial asset, the
claims of entitlement holders, other than the creditor, have priority over
the claim of the creditor.
(b) A claim of a creditor of a securities intermediary who has a
security interest in a financial asset held by a securities intermediary
has priority over claims of the securities intermediary's entitlement
holders who have security entitlements with respect to that financial
asset if the creditor has control over the financial asset.
(c) If a clearing corporation does not have sufficient financial assets
to satisfy both its obligations to entitlement holders who have security
entitlements with respect to a financial asset and its obligation to a
creditor of the clearing corporation who has a security interest in that
financial asset, the claim of the creditor has priority over the claims of
entitlement holders.

Legislative History

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