§ 25-9-206. Security interest arising in purchase or delivery of financial asset.

252 words·~1 min read·/nc/chapter-25/25-9-206

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

(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)of this section 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)of this section secures the obligation to make payment for the delivery. (1997-181, s. 6; 2000-169, s. 1.)