47-8510. Rights of purchaser of security
entitlement from entitlement holder
A. In a case not covered by the priority rules in chapter 9 of this title or the
rules stated in subsection C of this section, an action based on an adverse claim to a
financial asset or security entitlement, whether framed in conversion, replevin,
constructive trust, equitable lien or other theory, may not be asserted against a person
who purchases a security entitlement, or an interest therein, from an entitlement holder
if the purchaser gives value, does not have notice of the adverse claim and obtains
control.
B. If an adverse claim could not have been asserted against an entitlement holder
under section 47-8502, the adverse claim cannot be asserted against a person who
purchases a security entitlement, or an interest therein, from the entitlement holder.
C. In a case not covered by the priority rules in chapter 9 of this title, a
purchaser for value of a security entitlement or an interest therein, who obtains control
has priority over a purchaser of a security entitlement, or an interest therein, who does
not obtain control. Except as otherwise provided in subsection D of this section,
purchasers who have control rank according to priority in time of:
1. The purchaser's becoming the person for whom the securities account, in which
the security entitlement is carried, is maintained, if the purchaser obtained control
under section 47-8106, subsection D, paragraph 1;
2. The securities intermediary's agreement to comply with the purchaser's
entitlement orders with respect to security entitlements carried or to be carried in the
securities account in which the security entitlement is carried, if the purchaser
obtained control under section 47-8106, subsection D, paragraph 2; or
3. If the purchaser obtained control through another person under section 47-8106,
subsection D, paragraph 3, the time on which priority would be based under this
subsection if the other person were the secured party.
D. A securities intermediary as purchaser has priority over a conflicting purchaser
who has control unless otherwise agreed by the securities intermediary.
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