New York Laws
Part 4 - Registration
8-510 - Rights of Purchaser of Security Entitlement From Entitlement Holder.

(a) In a case not covered by the priority rules in Article 9 or the
rules stated in subsection (c), an action based on an adverse claim to a
financial asset or security entitlement, whether framed in conversion,
replevin, constructive trust, equitable lien, or other theory, may not
be asserted against a person who purchases a security entitlement, or an
interest therein, from an entitlement holder if the purchaser gives
value, does not have notice of the adverse claim, and obtains control.
(b) If an adverse claim could not have been asserted against an
entitlement holder under Section 8--502, the adverse claim cannot be
asserted against a person who purchases a security entitlement, or an
interest therein, from the entitlement holder.
(c) In a case not covered by the priority rules in Article 9, a
purchaser for value of a security entitlement, or an interest therein,
who obtains control has priority over a purchaser of a security
entitlement, or an interest therein, who does not obtain control. Except
as otherwise provided in subsection (d), purchasers who have control
rank according to priority in time of:
(1) the purchaser's becoming the person for whom the securities
account, in which the security entitlement is carried, is
maintained, if the purchaser obtained control under Section
8--106(d)(1);
(2) the securities intermediary's agreement to comply with the
purchaser's entitlement orders with respect to security
entitlements carried or to be carried in the securities
account in which the security entitlement is carried, if the
purchaser obtained control under Section 8--106(d)(2); or
(3) if the purchaser obtained control through another person
under Section 8--106(d)(3), the time on which priority would
be based under this subsection if the other person were the
secured party.
(d) A securities intermediary as purchaser has priority over a
conflicting purchaser who has control unless otherwise agreed by the
securities intermediary.