§ 26-1-9.1-328 — Priority of security interests in investment property

Indiana § 26-1-9.1-328

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

The following rules govern priority
among conflicting security interests in the same investment property:
(1) A security interest held by a secured party having control of
investment property under IC 26-1-9.1-106 has priority over a
security interest held by a secured party that does not have control
of the investment property.
(2) Except as otherwise provided in subdivisions (3) and (4),
conflicting security interests held by secured parties each of
which has control under IC 26-1-9.1-106 rank according to
priority in time of:
(A) if the collateral is a security, obtaining control;
(B) if the collateral is a security entitlement carried in a
securities account and:
(i) if the secured party obtained control under IC 26-1-8.1-106(d)(1), the secured party's becoming the person
for which the securities account is maintained;
(ii) if the secured party obtained control under IC 26-1-8.1-106(d)(2), the securities intermediary's agreement
to comply with the secured party's entitlement orders with
respect to security entitlements carried or to be carried in the
securities account; or
(iii) if the secured party obtained control through another
person under IC 26-1-8.1-106(d)(3), the time on which
priority would be based under this subdivision if the other
person were the secured party; or
(C) if the collateral is a commodity contract carried with a
commodity intermediary, the satisfaction of the requirement for
control specified in IC 26-1-9.1-106(b)(2) with respect to
commodity contracts carried or to be carried with the
commodity intermediary.
(3) A security interest held by a securities intermediary in a
security entitlement or a securities account maintained with the
securities intermediary has priority over a conflicting security
interest held by another secured party.
(4) A security interest held by a commodity intermediary in a
commodity contract or a commodity account maintained with the
commodity intermediary has priority over a conflicting security
interest held by another secured party.
(5) A security interest in a certificated security in registered form
which is perfected by taking delivery under IC 26-1-9.1-313(a)
and not by control under IC 26-1-9.1-314 has priority over a
conflicting security interest perfected by a method other than
control.
(6) Conflicting security interests created by a broker, securities
intermediary, or commodity intermediary, which are perfected
without control under IC 26-1-9.1-106 rank equally.
(7) In all other cases, priority among conflicting security interests
in investment property is governed by IC 26-1-9.1-322 and IC 26-1-9.1-323.

Legislative History

As added by P.L.57-2000, SEC.45.