§ 34.1-8-503 — Property interest of entitlement holder in financial asset held by securities intermediary

Wyoming § 34.1-8-503

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 8: INVESTMENT SECURITIES

Text

(a) 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 W.S. 34.1-8-511.
(b) An entitlement holder's property interest with respect
to a particular financial asset under subsection (a) of this
section 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.
(c) An entitlement holder's property interest with respect
to a particular financial asset under subsection (a) of this
section may be enforced against the securities intermediary only
by exercise of the entitlement holder's rights under W.S.
34.1-8-505 through 34.1-8-508.
(d) An entitlement holder's property interest with respect
to a particular financial asset under subsection (a) of this
section may be enforced against a purchaser of the financial
asset or interest therein only if: (1) insolvency proceedings
have been initiated by or against the securities intermediary;
(2) 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; (3) the securities intermediary violated its obligations
under W.S. 34.1-8-504 by transferring the financial asset or
interest therein to the purchaser; and (4) the purchaser is not
protected under subsection (e) of this section. 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.
(e) An action based on the entitlement holder's property
interest with respect to a particular financial asset under
subsection (a) of this section, 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 W.S.