(2) An entitlement holder’s property interest with respect to a particular financial asset under subsection (1) of this section is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.
(3) An entitlement holder’s property interest with respect to a particular financial asset under subsection (1) of this section may be enforced against the securities intermediary only by exercise of the entitlement holder’s rights under ORS 78.5050, 78.5060, 78.5070 and 78.5080.
(4) An entitlement holder’s property interest with respect to a particular financial asset under subsection (1) of this section may be enforced against a purchaser of the financial asset or interest therein only if:
(a) Insolvency proceedings have been initiated by or against the securities intermediary;
(b) The securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;
(c) The securities intermediary violated its obligations under ORS 78.5040 by transferring the financial asset or interest therein to the purchaser; and
(d) The purchaser is not protected under subsection (5) of this section. The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.
(5) An action based on the entitlement holder’s property interest with respect to a particular financial asset under subsection (1) of this section, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control and does not act in collusion with the securities intermediary in violating the securities intermediary’s obligations under ORS 78.5040. [1995 c.328 §43]
Structure 2021 Oregon Revised Statutes
Volume : 02 - Business Organizations, Commercial Code
Chapter 078 - Investment Securities
Section 78.1020 - Definitions and index of definitions.
Section 78.1040 - Acquisition of security or financial asset or interest therein.
Section 78.1050 - Notice of adverse claim.
Section 78.1070 - Whether indorsement, instruction or entitlement order is effective.
Section 78.1080 - Warranties in direct holding.
Section 78.1090 - Warranties in indirect holding.
Section 78.1100 - Applicability; choice of law.
Section 78.1110 - Clearing corporation rules.
Section 78.1120 - Creditor’s legal process.
Section 78.1140 - Evidentiary rules concerning certificated securities.
Section 78.1150 - Securities intermediary and others not liable to adverse claimant.
Section 78.2030 - Staleness as notice of defects or defenses.
Section 78.2040 - Effect of issuer’s restriction on transfer.
Section 78.2050 - Effect of unauthorized signature on security certificate.
Section 78.2060 - Completion or alteration of security certificate.
Section 78.2070 - Rights of issuer with respect to registered owners.
Section 78.2080 - Effect of signature of authenticating trustee, registrar or transfer agent.
Section 78.3020 - Rights of purchaser.
Section 78.3030 - "Protected purchaser."
Section 78.3040 - Indorsement.
Section 78.3050 - Instruction.
Section 78.3060 - Effect of guaranteeing signature, indorsement or instruction.
Section 78.4010 - Duty of issuer to register transfer.
Section 78.4020 - Assurance that indorsement or instruction is effective.
Section 78.4030 - Demand that issuer not register transfer.
Section 78.4040 - Wrongful registration.
Section 78.4050 - Replacement of lost, destroyed or wrongfully taken security certificate.
Section 78.5040 - Duty of securities intermediary to maintain financial asset.
Section 78.5050 - Duty of securities intermediary with respect to payments and distributions.
Section 78.5070 - Duty of securities intermediary to comply with entitlement order.
Section 78.5100 - Rights of purchaser of security entitlement from entitlement holder.
Section 78.5110 - Priority among security interests and entitlement holders.