§ 34.1-8-501 — Securities account; acquisition of security entitlement from securities intermediary

(a) "Securities account" means an account to which a
financial asset is or may be credited in accordance with an
agreement under which the person maintaining the account
undertakes to treat the person for whom the account is
maintained as entitled to exercise the rights that comprise the
financial asset.
(b) Except as otherwise provided in subsections (d) and
(e) of this section, a person acquires a security entitlement if
a securities intermediary:
(i) Indicates by book entry that a financial asset
has been credited to the person's securities account;
(ii) Receives a financial asset from the person or
acquires a financial asset for the person and, in either case,
accepts it for credit to the person's securities account; or
(iii) Becomes obligated under other law, regulation,
or rule to credit a financial asset to the person's securities
account.
(c) If a condition of subsection (b) of this section has
been met, a person has a security entitlement even though the
securities intermediary does not itself hold the financial
asset.
(d) If a securities intermediary holds a financial asset
for another person, and the financial asset is registered in the
name of, payable to the order of, or specially indorsed to the
other person, and has not been indorsed to the securities
intermediary or in blank, the other person is treated as holding
the financial asset directly rather than as having a security
entitlement with respect to the financial asset.
(e) Issuance of a security is not establishment of a
security entitlement.