§490:8-511  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. [L 1997, c 33, pt of §2]