§651-47  Levy on and execution sale of
investment securities; garnishment the proper procedure when the security is
subject to right of possession of third party.  (a)  A security or any
share or other interest evidenced thereby which is outstanding and not in the
possession of a third party who has a security interest, lien, or right of
retention therein which entitled the third party to possession shall be levied
upon under a writ of execution by being actually seized by the officer
executing the writ.



At any time after the issuance of the writ,
upon application of the judgment creditor or the officer executing the writ and
upon due notice to the defendant or other person having possession of the
security without being entitled thereto under a security interest, lien, or
right of retention, the court or judge may summarily direct the defendant or
such other person so having possession of the security to produce the same and
deliver it to the officer.



In the case of a levy for execution, the
security levied upon shall be advertised for sale and sold in the manner
provided in section 651-43.  After the sale the levying officer shall deliver
to the purchaser the security endorsed or assigned by the levying officer as
the agent of the judgment debtor, which delivery and endorsement or assignment
shall entitle the purchaser to all the right, title, and interest of the
judgment debtor in the security and to registration of the transfer as provided
in chapter 490, the Uniform Commercial Code, article 8.  This subsection shall
apply to any security which is either within the State or which is in the
possession of an owner or other person subject to the jurisdiction of this
State.



(b)  A security or any share or other interest
evidenced thereby which is outstanding and in the possession of a person who is
entitled to such possession under a security interest or lien or other right of
retention therein shall be reached by garnishment as provided in chapter 652.
[L 1927, c 269, pt of §1; RL 1935, §4150; am L 1939, c 76, §1; RL 1945, §10177;
RL 1955, §233-46; am L 1966, c 18, §7; HRS §651-47; gen ch 1985]



 



Law Journals and Reviews



 



  Attachment or Levy of a Security Under the Uniform Commercial
Code.  4 HBJ, Nov 1966, at 16.