§25‑8‑503. Property interest of entitlement holder in financialasset held by securities intermediary.
(a) To the extentnecessary for a securities intermediary to satisfy all security entitlementswith respect to a particular financial asset, all interests in that financialasset held by the securities intermediary are held by the securitiesintermediary for the entitlement holders, are not property of the securitiesintermediary, and are not subject to claims of creditors of the securitiesintermediary, except as otherwise provided in G.S. 25‑8‑511.
(b) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section is a pro rata property interest in all interestsin that financial asset held by the securities intermediary, without regard tothe time the entitlement holder acquired the security entitlement or the timethe securities intermediary acquired the interest in that financial asset.
(c) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section may be enforced against the securitiesintermediary only by exercise of the entitlement holder's rights under G.S. 25‑8‑505through G.S. 25‑8‑508.
(d) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section may be enforced against a purchaser of thefinancial asset or interest therein only if:
(1) Insolvencyproceedings have been initiated by or against the securities intermediary;
(2) The securitiesintermediary does not have sufficient interests in the financial asset tosatisfy the security entitlements of all of its entitlement holders to thatfinancial asset;
(3) The securitiesintermediary violated its obligations under G.S. 25‑8‑504 bytransferring the financial asset or interest therein to the purchaser; and
(4) The purchaser is notprotected under subsection (e) of this section.
The trustee or other liquidator,acting on behalf of all entitlement holders having security entitlements withrespect to a particular financial asset, may recover the financial asset, orinterest therein, from the purchaser. If the trustee or other liquidator electsnot to pursue that right, an entitlement holder whose security entitlementremains unsatisfied has the right to recover its interest in the financialasset from the purchaser.
(e) An action based onthe entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) of this section, whether framed inconversion, replevin, constructive trust, equitable lien, or other theory, maynot be asserted against any purchaser of a financial asset or interest thereinwho gives value, obtains control, and does not act in collusion with thesecurities intermediary in violating the securities intermediary's obligationsunder G.S. 25‑8‑504. (1997‑181, s. 1.)
§25‑8‑503. Property interest of entitlement holder in financialasset held by securities intermediary.
(a) To the extentnecessary for a securities intermediary to satisfy all security entitlementswith respect to a particular financial asset, all interests in that financialasset held by the securities intermediary are held by the securitiesintermediary for the entitlement holders, are not property of the securitiesintermediary, and are not subject to claims of creditors of the securitiesintermediary, except as otherwise provided in G.S. 25‑8‑511.
(b) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section is a pro rata property interest in all interestsin that financial asset held by the securities intermediary, without regard tothe time the entitlement holder acquired the security entitlement or the timethe securities intermediary acquired the interest in that financial asset.
(c) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section may be enforced against the securitiesintermediary only by exercise of the entitlement holder's rights under G.S. 25‑8‑505through G.S. 25‑8‑508.
(d) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section may be enforced against a purchaser of thefinancial asset or interest therein only if:
(1) Insolvencyproceedings have been initiated by or against the securities intermediary;
(2) The securitiesintermediary does not have sufficient interests in the financial asset tosatisfy the security entitlements of all of its entitlement holders to thatfinancial asset;
(3) The securitiesintermediary violated its obligations under G.S. 25‑8‑504 bytransferring the financial asset or interest therein to the purchaser; and
(4) The purchaser is notprotected under subsection (e) of this section.
The trustee or other liquidator,acting on behalf of all entitlement holders having security entitlements withrespect to a particular financial asset, may recover the financial asset, orinterest therein, from the purchaser. If the trustee or other liquidator electsnot to pursue that right, an entitlement holder whose security entitlementremains unsatisfied has the right to recover its interest in the financialasset from the purchaser.
(e) An action based onthe entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) of this section, whether framed inconversion, replevin, constructive trust, equitable lien, or other theory, maynot be asserted against any purchaser of a financial asset or interest thereinwho gives value, obtains control, and does not act in collusion with thesecurities intermediary in violating the securities intermediary's obligationsunder G.S. 25‑8‑504. (1997‑181, s. 1.)
§25‑8‑503. Property interest of entitlement holder in financialasset held by securities intermediary.
(a) To the extentnecessary for a securities intermediary to satisfy all security entitlementswith respect to a particular financial asset, all interests in that financialasset held by the securities intermediary are held by the securitiesintermediary for the entitlement holders, are not property of the securitiesintermediary, and are not subject to claims of creditors of the securitiesintermediary, except as otherwise provided in G.S. 25‑8‑511.
(b) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section is a pro rata property interest in all interestsin that financial asset held by the securities intermediary, without regard tothe time the entitlement holder acquired the security entitlement or the timethe securities intermediary acquired the interest in that financial asset.
(c) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section may be enforced against the securitiesintermediary only by exercise of the entitlement holder's rights under G.S. 25‑8‑505through G.S. 25‑8‑508.
(d) An entitlementholder's property interest with respect to a particular financial asset undersubsection (a) of this section may be enforced against a purchaser of thefinancial asset or interest therein only if:
(1) Insolvencyproceedings have been initiated by or against the securities intermediary;
(2) The securitiesintermediary does not have sufficient interests in the financial asset tosatisfy the security entitlements of all of its entitlement holders to thatfinancial asset;
(3) The securitiesintermediary violated its obligations under G.S. 25‑8‑504 bytransferring the financial asset or interest therein to the purchaser; and
(4) The purchaser is notprotected under subsection (e) of this section.
The trustee or other liquidator,acting on behalf of all entitlement holders having security entitlements withrespect to a particular financial asset, may recover the financial asset, orinterest therein, from the purchaser. If the trustee or other liquidator electsnot to pursue that right, an entitlement holder whose security entitlementremains unsatisfied has the right to recover its interest in the financialasset from the purchaser.
(e) An action based onthe entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) of this section, whether framed inconversion, replevin, constructive trust, equitable lien, or other theory, maynot be asserted against any purchaser of a financial asset or interest thereinwho gives value, obtains control, and does not act in collusion with thesecurities intermediary in violating the securities intermediary's obligationsunder G.S. 25‑8‑504. (1997‑181, s. 1.)
