securities intermediary.
1.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 section
41-08-51.
2.An entitlement holder's property interest with respect to a particular financial asset
under subsection 1 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
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securities intermediary.
1. 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 section
41-08-51.
2. An entitlement holder's property interest with respect to a particular financial asset
under subsection 1 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.
3. An entitlement holder's property interest with respect to a particular financial asset
under subsection 1 may be enforced against the securities intermediary only by
exercise of the entitlement holder's rights under sections 41-08-45 through 41-08-48.
4. An entitlement holder's property interest with respect to a particular financial asset
under subsection 1 may be enforced against a purchaser of the financial asset or
interest therein only if:
a. Insolvency proceedings have been initiated by or against the securities
intermediary;
b. 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;
c. The securities intermediary violated its obligations under section 41-08-44 by
transferring the financial asset or interest therein to the purchaser; and
d. The purchaser is not protected under subsection 5.
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.
5. An action based on the entitlement holder's property interest with respect to a
particular financial asset under subsection 1, 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 section 41-08-44.