(a) [Security interest when person buys through securities intermediary.]
A security interest in favor of a securities intermediary attaches to a person's security entitlement if:
(1) the person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and
(2) the securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.
(b) [Security interest secures obligation to pay for financial asset.]
The security interest described in subsection (a) secures the person's obligation to pay for the financial asset.
(c) [Security interest in payment against delivery transaction.]
A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:
(1) the security or other financial asset:
(A) in the ordinary course of business is transferred by delivery with any necessary indorsement or assignment; and
(B) is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and
(2) the agreement calls for delivery against payment.
(d) [Security interest secures obligation to pay for delivery.]
The security interest described in subsection (c) secures the obligation to make payment for the delivery.
[Subpart 2. Rights and Duties] [Table of Contents]