One purpose of this section is to protect an issuer or nominated person from claims of a beneficiary's creditors.__It is a fallback provision inasmuch as issuers and nominated persons frequently may obtain and perfect security interests under the usual Article 9 [Maine cite Article 9-A] rules, and, in many cases, the documents will be owned by the issuer, nominated person, or applicant.

Sec. B-19. 11 MRSA §7-503, sub-§(1), ¶(a) is amended to read:

(a) Delivered or entrusted them or any document of title covering them to the bailor or his the bailor's nominee with actual or apparent authority to ship, store or sell or with power to obtain delivery under this Article (section 7-403) or with power of disposition under this Title (sections 2- 403 and 9-307 9-1320) or other statute or rule of law; nor

Official Comment §8-1102

7. "Entitlement holder." This term designates those who hold financial assets through intermediaries in the indirect holding system. Because many of the rules of Part 5 impose duties on securities intermediaries in favor of entitlement holders, the definition of entitlement holder is, in most cases, limited to the person specifically designated as such on the records of the intermediary. The last sentence of the definition covers the relatively unusual cases where a person may acquire a security entitlement under Section 8501 even though the person may not be specifically designated as an entitlement holder on the records of the securities intermediary.

A person may have an interest in a security entitlement, and may even have the right to give entitlement orders to the securities intermediary with respect to it, even though the person is not the entitlement holder. For example, a person who holds securities through a securities account in its own name may have given discretionary trading authority to another person, such as an investment adviser. Similarly, the control provisions in Section 8-106 and the related provisions in Article 9 [Maine cite Article 9-A] are designed to facilitate transactions in which a person who holds securities through a securities account uses them as collateral in an arrangement where the securities intermediary has agreed that if the secured party so directs the intermediary will dispose of the positions. In such arrangements, the debtor remains the entitlement holder but has agreed that the secured party can initiate entitlement orders.