70A-9a-206. Security interest arising in purchase or delivery of financial asset.
(1) A security interest in favor of a securities intermediary attaches to a person's security
entitlement if:
(a) 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
(b) the securities intermediary credits the financial asset to the buyer's securities account
before the buyer pays the securities intermediary.
(2) The security interest described in Subsection (1) secures the person's obligation to pay
for the financial asset.
(3) 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:
(a) the security or other financial asset:
(i) in the ordinary course of business is transferred by delivery with any necessary
indorsement or assignment; and
(ii) is delivered under an agreement between persons in the business of dealing with such
securities or financial assets; and
(b) the agreement calls for delivery against payment.
(4) The security interest described in Subsection (3) secures the obligation to make
payment for the delivery.
Enacted by Chapter 252, 2000 General Session
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Last revised: Thursday, May 28, 2009