A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset in favor of an entitlement holder.
Structure Delaware Code
Article 8. Investment Securities
Part 1. Short Title and General Matters
§ 8-104. Acquisition of security or financial asset or interest therein.
§ 8-105. Notice of adverse claim.
§ 8-107. Whether endorsement, instruction, or entitlement order is effective.
§ 8-108. Warranties in direct holding.
§ 8-109. Warranties in indirect holding.
§ 8-110. Applicability; choice of law.
§ 8-111. Clearing corporation rules.
§ 8-112. Creditor's legal process.
§ 8-113. Statute of frauds inapplicable.
§ 8-114. Evidentiary rules concerning certificated securities.
§ 8-115. Securities intermediary and others not liable to adverse claimant.