§ 34.1-8-511 — Priority among security interests and entitlement holders

(a) Except as otherwise provided in subsections (b) and
(c) of this section, if a securities intermediary does not have
sufficient interests in a particular financial asset to satisfy
both its obligations to entitlement holders who have security
entitlements to that financial asset and its obligation to a
creditor of the securities intermediary who has a security
interest in that financial asset, the claims of entitlement
holders, other than the creditor, have priority over the claim
of the creditor.
(b) A claim of a creditor of a securities intermediary who
has a security interest in a financial asset held by a
securities intermediary has priority over claims of the
securities intermediary's entitlement holders who have security
entitlements with respect to that financial asset if the
creditor has control over the financial asset.
(c) If a clearing corporation does not have sufficient
financial assets to satisfy both its obligations to entitlement
holders who have security entitlements with respect to a
financial asset and its obligation to a creditor of the clearing
corporation who has a security interest in that financial asset,
the claim of the creditor has priority over the claims of
entitlement holders.
PART 6
TRANSITION PROVISIONS FOR REVISED ARTICLE 8
AND CONFORMING AMENDMENTS TO
ARTICLES 1, 4, 5, 9, AND 10