§490:8-510  Rights of purchaser of security
entitlement from entitlement holder.  (a)  In a case not covered by the
priority rules in article 9 or the rules stated in subsection (c), 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 490:8-502, 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 article 9, 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), 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 490:8-106(d)(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
490:8-106(d)(2); or



(3)  If the purchaser obtained control through another
person under section 490:8-106(d)(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. [L 1997, c 33, pt of §2; am L 2000, c 241, §27]