§ 9-206. 9-206

232 words·~1 min read·/us/ucc/a9/s9-206

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)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]](index.htm#part22)