47-9206. Security interest arising in purchase or delivery of financial asset

192 words·~1 min read·/az/title-47/47-9206

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. 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. The security interest described in subsection A secures the person's obligation to pay for the financial asset.

C. 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. The security interest described in subsection C secures the obligation to make payment for the delivery.