§ 8-501 — Securities Account; Acquisition of Security Entitlement from Securities Intermediary

Section 8--501. Securities Account; Acquisition of Security Entitlement\n from Securities Intermediary.\n (a) "Securities account" means an account to which a financial asset\nis or may be credited in accordance with an agreement under which the\nperson maintaining the account undertakes to treat the person for whom\nthe account is maintained as entitled to exercise the rights that\ncomprise the financial asset.\n (b) Except as otherwise provided in subsections (d) and (e), a person\nacquires a security entitlement if a securities intermediary:\n (1) indicates by book entry that a financial asset has been\n credited to the person's securities account;\n (2) receives a financial asset from the person or acquires a\n financial asset for the person and, in either case, accepts\n it for credit to the person's securities account; or\n (3) becomes obligated under other law, regulation, or rule to\n credit a financial asset to the person's securities account.\n (c) If a condition of subsection (b) has been met, a person has a\nsecurity entitlement even though the securities intermediary does not\nitself hold the financial asset.\n (d) If a securities intermediary holds a financial asset for another\nperson, and the financial asset is registered in the name of, payable to\nthe order of, or specially indorsed to the other person, and has not\nbeen indorsed to the securities intermediary or in blank, the other\nperson is treated as holding the financial asset directly rather than as\nhaving a security entitlement with respect to the financial asset.\n (e) Issuance of a security is not establishment of a security\nentitlement.\n