§ 8.8A-503. Property interest of entitlement holder in financial asset heldby securities intermediary.
(a) To the extent necessary for a securities intermediary to satisfy allsecurity entitlements with respect to a particular financial asset, allinterests in that financial asset held by the securities intermediary areheld by the securities intermediary for the entitlement holders, are notproperty of the securities intermediary, and are not subject to claims ofcreditors of the securities intermediary, except as otherwise provided in §8.8A-511.
(b) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) is a pro rata property interest in allinterests in that financial asset held by the securities intermediary,without regard to the time the entitlement holder acquired the securityentitlement or the time the securities intermediary acquired the interest inthat financial asset.
(c) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) may be enforced against the securitiesintermediary only by exercise of the entitlement holder's rights under §§8.8A-505 through 8.8A-508.
(d) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) may be enforced against a purchaser ofthe financial asset or interest therein only if:
(1) insolvency proceedings have been initiated by or against the securitiesintermediary;
(2) the securities intermediary does not have sufficient interests in thefinancial asset to satisfy the security entitlements of all of itsentitlement holders to that financial asset;
(3) the securities intermediary violated its obligations under § 8.8A-504 bytransferring the financial asset or interest therein to the purchaser; and
(4) the purchaser is not protected under subsection (e). The trustee or otherliquidator, acting on behalf of all entitlement holders having securityentitlements with respect to a particular financial asset, may recover thefinancial asset, or interest therein, from the purchaser. If the trustee orother liquidator elects not to pursue that right, an entitlement holder whosesecurity entitlement remains unsatisfied has the right to recover itsinterest in the financial asset from the purchaser.
(e) An action based on the entitlement holder's property interest withrespect to a particular financial asset under subsection (a), whether framedin conversion, replevin, constructive trust, equitable lien, or other theory,may not be asserted against any purchaser of a financial asset or interesttherein who gives value, obtains control, and does not act in collusion withthe securities intermediary in violating the securities intermediary'sobligations under § 8.8A-504.
§ 8.8A-503. Property interest of entitlement holder in financial asset heldby securities intermediary.
(a) To the extent necessary for a securities intermediary to satisfy allsecurity entitlements with respect to a particular financial asset, allinterests in that financial asset held by the securities intermediary areheld by the securities intermediary for the entitlement holders, are notproperty of the securities intermediary, and are not subject to claims ofcreditors of the securities intermediary, except as otherwise provided in §8.8A-511.
(b) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) is a pro rata property interest in allinterests in that financial asset held by the securities intermediary,without regard to the time the entitlement holder acquired the securityentitlement or the time the securities intermediary acquired the interest inthat financial asset.
(c) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) may be enforced against the securitiesintermediary only by exercise of the entitlement holder's rights under §§8.8A-505 through 8.8A-508.
(d) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) may be enforced against a purchaser ofthe financial asset or interest therein only if:
(1) insolvency proceedings have been initiated by or against the securitiesintermediary;
(2) the securities intermediary does not have sufficient interests in thefinancial asset to satisfy the security entitlements of all of itsentitlement holders to that financial asset;
(3) the securities intermediary violated its obligations under § 8.8A-504 bytransferring the financial asset or interest therein to the purchaser; and
(4) the purchaser is not protected under subsection (e). The trustee or otherliquidator, acting on behalf of all entitlement holders having securityentitlements with respect to a particular financial asset, may recover thefinancial asset, or interest therein, from the purchaser. If the trustee orother liquidator elects not to pursue that right, an entitlement holder whosesecurity entitlement remains unsatisfied has the right to recover itsinterest in the financial asset from the purchaser.
(e) An action based on the entitlement holder's property interest withrespect to a particular financial asset under subsection (a), whether framedin conversion, replevin, constructive trust, equitable lien, or other theory,may not be asserted against any purchaser of a financial asset or interesttherein who gives value, obtains control, and does not act in collusion withthe securities intermediary in violating the securities intermediary'sobligations under § 8.8A-504.
§ 8.8A-503. Property interest of entitlement holder in financial asset heldby securities intermediary.
(a) To the extent necessary for a securities intermediary to satisfy allsecurity entitlements with respect to a particular financial asset, allinterests in that financial asset held by the securities intermediary areheld by the securities intermediary for the entitlement holders, are notproperty of the securities intermediary, and are not subject to claims ofcreditors of the securities intermediary, except as otherwise provided in §8.8A-511.
(b) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) is a pro rata property interest in allinterests in that financial asset held by the securities intermediary,without regard to the time the entitlement holder acquired the securityentitlement or the time the securities intermediary acquired the interest inthat financial asset.
(c) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) may be enforced against the securitiesintermediary only by exercise of the entitlement holder's rights under §§8.8A-505 through 8.8A-508.
(d) An entitlement holder's property interest with respect to a particularfinancial asset under subsection (a) may be enforced against a purchaser ofthe financial asset or interest therein only if:
(1) insolvency proceedings have been initiated by or against the securitiesintermediary;
(2) the securities intermediary does not have sufficient interests in thefinancial asset to satisfy the security entitlements of all of itsentitlement holders to that financial asset;
(3) the securities intermediary violated its obligations under § 8.8A-504 bytransferring the financial asset or interest therein to the purchaser; and
(4) the purchaser is not protected under subsection (e). The trustee or otherliquidator, acting on behalf of all entitlement holders having securityentitlements with respect to a particular financial asset, may recover thefinancial asset, or interest therein, from the purchaser. If the trustee orother liquidator elects not to pursue that right, an entitlement holder whosesecurity entitlement remains unsatisfied has the right to recover itsinterest in the financial asset from the purchaser.
(e) An action based on the entitlement holder's property interest withrespect to a particular financial asset under subsection (a), whether framedin conversion, replevin, constructive trust, equitable lien, or other theory,may not be asserted against any purchaser of a financial asset or interesttherein who gives value, obtains control, and does not act in collusion withthe securities intermediary in violating the securities intermediary'sobligations under § 8.8A-504.
