§25‑9‑206.  Security interest arising in purchase or delivery offinancial asset.

(a) Security interestwhen person buys through securities intermediary. – A security interest infavor of a securities intermediary attaches to a person's security entitlementif:

(1) The person buys afinancial asset through the securities intermediary in a transaction in whichthe person is obligated to pay the purchase price to the securitiesintermediary at the time of the purchase; and

(2) The securitiesintermediary credits the financial asset to the buyer's securities accountbefore the buyer pays the securities intermediary.

(b) Security interestsecures obligation to pay for financial asset. – The security interestdescribed in subsection (a) of this section secures the person's obligation topay for the financial asset.

(c) Security interestin payment against delivery transaction. – A security interest in favor of aperson that delivers a certificated security or other financial assetrepresented by a writing attaches to the security or other financial asset if:

(1) The security orother financial asset:

a. In the ordinarycourse of business is transferred by delivery with any necessary indorsement orassignment; and

b. Is delivered underan agreement between persons in the business of dealing with such securities orfinancial assets; and

(2) The agreement callsfor delivery against payment.

(d) Security interestsecures obligation to pay for delivery. – The security interest described insubsection (c) of this section secures the obligation to make payment for thedelivery. (1997‑181, s. 6; 2000‑169, s. 1.)