47-8511

47-8511. Priority among security interests and
entitlement holders

A. Except as otherwise provided in subsections B and C, 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.