The priority rule stated in paragraph (5) [Maine cite subsection (5)] may seem anomalous, in that it can afford less favorable treatment to purchasers who buy collateral outright that to those who take a security interest in it. For example, a buyer of a security certificate would cut off a security interest perfected by filing only if the buyer achieves the status of a protected purchaser under Section 8-303 [Maine cite section 8- 1303]. The buyer would not be a protected purchaser, for example, if it does not obtain "control" under Section 8-106 [Maine cite section 8-1106] (e.g., if it fails to obtain a proper indorsement of the certificate) or if it had notice of an adverse claim under Section 8-105 [Maine cite section 8-1105]. The apparent anomaly disappears, however, when one understands the priority rule not as one intended to protect careless or guilty parties, but as one that eliminates the need to conduct a search of the public records only insofar as necessary to serve the needs of the securities markets.

7. Secured Financing of Securities Firms. Priority questions concerning security interests granted by brokers and securities intermediaries are governed by the general control-beats-non- control priority rule of paragraph (1) [Maine cite subsection (1)], as supplemented by the special rules set out in paragraphs (2) [Maine cite subsection (2)] (temporal priority-first to control), (3) [Maine cite subsection (3)] (special priority for securities intermediary), and (6) [Maine cite subsection (6)] (equal priority for non-control). The following examples illustrate the priority rules as applied to this setting. (In all cases it is assumed that the debtor retains sufficient other securities to satisfy all customers' claims. This section deals with the relative rights of secured lenders to a securities firm. Disputes between a secured lender and the firm's own customers are governed by Section 8-511 [Maine cite section 8-1511].)

Example 7: Able & Co., a securities dealer, enters into financing arrangements with two lenders, Alpha Bank and Beta Bank. In each case the agreements provide that the lender will have a security interest in the securities identified on lists