Subpart 3: PRIORITY HEADING: PL 1999, C. 699, PT. A, §2 (NEW)
§9-1328. Priority of security interests in investment property
The following rules govern priority among conflicting security interests in the same investment property. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(1).
A security interest held by a secured party having control of investment property under section 9-1106 has priority over
a security interest held by a secured party that does not have control of the investment property.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(2).
Except as otherwise provided in subsections (3) and (4), conflicting security interests held by secured parties each of
which has control under section 9-1106 rank according to priority in time of:
(a). If the collateral is a security, obtaining control; [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(b). If the collateral is a security entitlement carried in a securities account and:
(i) If the secured party obtained control under section 8-1106, subsection (4), paragraph (a), the secured party's becoming
the person for which the securities account is maintained;
(ii) If the secured party obtained control under section 8-1106, subsection (4), paragraph (b), 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
(iii) If the secured party obtained control through another person under section 8-1106, subsection (4), paragraph (c),
the time on which priority would be based under this paragraph if the other person were the secured party; or [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(c). If the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for
control specified in section 9-1106, subsection (2), paragraph (b) with respect to commodity contracts carried or to be carried
with the commodity intermediary. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(3).
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.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(4).
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.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(5).
A security interest in a certificated security in registered form that is perfected by taking delivery under section 9-1313,
subsection (1) and not by control under section 9-1314 has priority over a conflicting security interest perfected by a method
other than control.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(6).
Conflicting security interests created by a broker, securities intermediary or commodity intermediary that are perfected
without control under section 9-1106 rank equally.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(7).
In all other cases, priority among conflicting security interests in investment property is governed by sections 9-1322
and 9-1323.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
SECTION HISTORY
1999, c. 699, §A2 (NEW).
1999, c. 699, §A4 (AFF).
Data for this page extracted on 10/16/2012 08:20:53.