Section 1. Section 70A-8-511 is amended to read:70A-8-511. Priority among security interests and entitlement holders.(1)Except as otherwise provided in Subsections (2) and (3), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.(2)A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.(3)If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.(4)If Subsection (2) or (3) applies to a financial asset held by a securities intermediary, the securities intermediary shall provide a written, conspicuous disclosure to each of the securities intermediary's entitlement holders stating:(a)that the financial asset is subject to Subsection (2) or (3); and(b)a brief description of the practical implication of the financial asset being subject to Subsection (2) or (3).