57A-8-501. Securities account; acquisition of security entitlement from securities intermediary.
(a) "Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.
(b) Except as otherwise provided in subsections (d) and (e), a person acquires a security entitlement if a securities intermediary:
(1)Indicates by book entry that a financial asset has been credited to the person's securities account;
(2)Receives a financial asset from the person or acquires a financial asset for the person and, in either case, accepts it for credit to the person's securities account; or
(3)Becomes obligated under other law, regulation, or rule to credit a financial asset to the person's securities account.
(c) If a condition of subsection (b) has been met, a person has a security entitlement even though the securities intermediary does not itself hold the financial asset.
(d) If a securities intermediary holds a financial asset for another person, and the financial asset is registered in the name of, payable to the order of, or specially indorsed to the other person, and has not been indorsed to the securities intermediary or in blank, the other person is treated as holding the financial asset directly rather than as having a security entitlement with respect to the financial asset.
(e) Issuance of a security is not establishment of a security entitlement.
Source: SL 1998, ch 284, ยง1.
Structure South Dakota Codified Laws
Title 57A - Uniform Commercial Code
Chapter 08 - Investment Securities
Section 57A-8-101 - Short title.
Section 57A-8-102 - Definitions.
Section 57A-8-104 - Acquisition of security or financial asset or interest therein.
Section 57A-8-105 - Notice of adverse claim.
Section 57A-8-107 - Whether endorsement, instruction, or entitlement order is effective.
Section 57A-8-108 - Warranties in direct holding.
Section 57A-8-109 - Warranties in indirect holding.
Section 57A-8-110 - Applicability--Choice of law.
Section 57A-8-111 - Clearing corporation rules.
Section 57A-8-112 - Creditor's legal process.
Section 57A-8-113 - Statute of frauds inapplicable.
Section 57A-8-114 - Evidentiary rules concerning certificated securities.
Section 57A-8-115 - Securities intermediary and others not liable to adverse claimant.
Section 57A-8-116 - Securities intermediary as purchaser for value.
Section 57A-8-202 - Issuer's responsibility and defenses; notice of defect or defense.
Section 57A-8-203 - Staleness as notice of defect or defense.
Section 57A-8-204 - Effect of issuer's restriction on transfer.
Section 57A-8-205 - Effect of unauthorized signature on security certificate.
Section 57A-8-206 - Completion or alteration of security certificate.
Section 57A-8-207 - Rights and duties of issuer with respect to registered owners.
Section 57A-8-208 - Effect of signature of authenticating trustee, registrar, or transfer agent.
Section 57A-8-209 - Issuer's lien.
Section 57A-8-210 - Overissue.
Section 57A-8-302 - Rights of purchaser.
Section 57A-8-303 - Protected purchaser.
Section 57A-8-304 - Indorsement.
Section 57A-8-305 - Instruction.
Section 57A-8-306 - Effect of guaranteeing signature, indorsement, or instruction.
Section 57A-8-307 - Purchaser's right to requisites for registration of transfer.
Section 57A-8-401 - Duty of issuer to register transfer.
Section 57A-8-402 - Assurance that indorsement or instruction is effective.
Section 57A-8-403 - Demand that issuer not register transfer.
Section 57A-8-404 - Wrongful registration.
Section 57A-8-405 - Replacement of lost, destroyed, or wrongfully taken security certificate.
Section 57A-8-407 - Authenticating trustee, transfer agent, and registrar.
Section 57A-8-502 - Assertion of adverse claim against entitlement holder.
Section 57A-8-504 - Duty of securities intermediary to maintain financial asset.
Section 57A-8-505 - Duty of securities intermediary with respect to payments and distributions.
Section 57A-8-507 - Duty of securities intermediary to comply with entitlement order.
Section 57A-8-510 - Rights of purchaser of security entitlement from entitlement holder.
Section 57A-8-511 - Priority among security interests and entitlement holders.