(a) Except as otherwise provided in subsections (b) and (c), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.
(b) A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.
(c) If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.
Structure Delaware Code
Article 8. Investment Securities
§ 8-501. Securities account; acquisition of security entitlement from securities intermediary.
§ 8-502. Assertion of adverse claim against entitlement holder.
§ 8-503. Property interest of entitlement holder in financial asset held by securities intermediary.
§ 8-504. Duty of securities intermediary to maintain financial asset.
§ 8-505. Duty of securities intermediary with respect to payments and distributions.
§ 8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder.
§ 8-507. Duty of securities intermediary to comply with entitlement order.
§ 8-510. Rights of purchaser of security entitlement from entitlement holder.
§ 8-511. Priority among security interests and entitlement holders.