11-9-328. Priority of security interests in investment property.
418 words·~2 min read·
/ga/title-11-commercial-code/subpart-3-priority/11-9-328·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The following rules govern priority among conflicting security interests in the same investment property:
A security interest held by a secured party having control of investment property under Code Section 11-9-106 has priority over a security interest held by a secured party that does not have control of the investment property;
Except as otherwise provided in paragraphs
(3)and
(4)of this Code section, conflicting security interests held by secured parties each of which has control under Code Section 11-9-106 rank according to priority in time of:
If the collateral is a security, obtaining control;
If the collateral is a security entitlement carried in a securities account and:
If the secured party obtained control under paragraph
(1)of subsection
(d)of Code Section 11-8-106, the secured party’s becoming the person for which the securities account is maintained;
If the secured party obtained control under paragraph
(2)of subsection
(d)of Code Section 11-8-106, the securities intermediary’s agreement to comply with the secured party’s entitlement orders with respect to security entitlements carried or to be carried in the securities account; or
If the secured party obtained control through another person under paragraph
(3)of subsection
(d)of Code Section 11-8-106, the time on which priority would be based under this paragraph if the other person were the secured party; or
If the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in paragraph
(2)of subsection
(b)of Code Section 11-9-106 with respect to commodity contracts carried or to be carried with the commodity intermediary;
A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party;
A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party;
A security interest in a certificated security in registered form which is perfected by taking delivery under subsection
(a)of Code Section 11-9-313 and not by control under Code Section 11-9-314 has priority over a conflicting security interest perfected by a method other than control;
Conflicting security interests created by a broker, securities intermediary, or commodity intermediary which are perfected without control under Code Section 11-9-106 rank equally; and
In all other cases, priority among conflicting security interests in investment property is governed by Code Sections 11-9-322 and 11-9-323.