New York Laws
Part 4 - Registration
8-511 - Priority Among Security Interests and Entitlement Holders.

(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 New York Laws