§ 11-9-103. Purchase Money Security Interest; Application of Payments; Burden of Establishing
Definitions. As used in this Code section, the term: “Purchase money collateral” means goods or software that secures a purchase money obligation incurred with respect to that collateral. “Purchase money obligation” means an obligation of an obligor incurred as all or part of the price of the collateral or for value given to enable […]
§ 11-8-501. Securities Account; Acquisition of Security Entitlement From Securities Intermediary
“Securities account” means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset. Except as otherwise provided in subsections […]
§ 11-9-104. Control of Deposit Account
Requirements for control. A secured party has control of a deposit account if: The secured party is the bank with which the deposit account is maintained; The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the […]
§ 11-8-502. Assertion of Adverse Claim Against Entitlement Holder
An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under Code Section 11-8-501 for value and without notice of the adverse claim. History. Code 1981, § 11-8-502 , enacted […]
§ 11-9-105. Control of Electronic Chattel Paper
General rule; control of electronic chattel paper. A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. Specific facts giving control. A system satisfies the […]
§ 11-8-503. Property Interest of Entitlement Holder in Financial Asset Held by Securities Intermediary
To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of […]
§ 11-9-106. Control of Investment Property
Control under Code Section 11-8-106. A person has control of a certificated security, uncertificated security, or security entitlement as provided in Code Section 11-8-106. Control of commodity contract. A secured party has control of a commodity contract if: The secured party is the commodity intermediary with which the commodity contract is carried; or […]
§ 11-8-504. Duty of Securities Intermediary to Maintain Financial Asset
A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries. […]
§ 11-8-505. Duty of Securities Intermediary With Respect to Payments and Distributions
A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if: The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or In the absence of agreement, the securities […]
§ 11-8-506. Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder
A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if: The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or In the absence of agreement, the […]