State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-328

70A-9a-328. Priority of security interests in investment property.
The following rules govern priority among conflicting security interests in the sameinvestment property:
(1) A security interest held by a secured party having control of investment propertyunder Section 70A-9a-106 has priority over a security interest held by a secured party that doesnot have control of the investment property.
(2) Except as otherwise provided in Subsections (3) and (4), conflicting security interestsheld by secured parties each of which has control under Section 70A-9a-106 rank according topriority in time of:
(a) if the collateral is a security, obtaining control;
(b) if the collateral is a security entitlement carried in a securities account and:
(i) if the secured party obtained control under Subsection 70A-8-105(4)(a), the securedparty's becoming the person for which the securities account is maintained;
(ii) if the secured party obtained control under Subsection 70A-8-105(4)(b), the securitiesintermediary's agreement to comply with the secured party's entitlement orders with respect tosecurity entitlements carried or to be carried in the securities account; or
(iii) if the secured party obtained control through another person under Subsection70A-8-105(4)(c), the time on which priority would be based under this subsection if the otherperson were the secured party; or
(c) if the collateral is a commodity contract carried with a commodity intermediary, thesatisfaction of the requirement for control specified in Subsection 70A-9a-106(2)(b) with respectto commodity contracts carried or to be carried with the commodity intermediary.
(3) A security interest held by a securities intermediary in a security entitlement or asecurities account maintained with the securities intermediary has priority over a conflictingsecurity interest held by another secured party.
(4) A security interest held by a commodity intermediary in a commodity contract or acommodity account maintained with the commodity intermediary has priority over a conflictingsecurity interest held by another secured party.
(5) A security interest in a certificated security in registered form which is perfected bytaking delivery under Subsection 70A-9a-313(1) and not by control under Section 70A-9a-314has priority over a conflicting security interest perfected by a method other than control.
(6) Conflicting security interests created by a broker, securities intermediary, orcommodity intermediary which are perfected without control under Section 70A-9a-106 rankequally.
(7) In all other cases, priority among conflicting security interests in investment propertyis governed by Sections 70A-9a-322 and 70A-9a-323.

Enacted by Chapter 252, 2000 General Session