Vermont Statutes
Article 8 - Investment Securities
§ 8—503. Property interest of entitlement holder in financial asset held by securities intermediary

§ 8—503. Property interest of entitlement holder in financial asset held by securities intermediary
(a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in section 8—511 of this title.
(b) An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) of this section is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.
(c) An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) of this section may be enforced against the securities intermediary only by exercise of the entitlement holder’s rights under sections 8—505 through 8—508 of this title.
(d) An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) of this section may be enforced against a purchaser of the financial asset or interest therein only if:
(1) insolvency proceedings have been initiated by or against the securities intermediary;
(2) the securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;
(3) the securities intermediary violated its obligations under section 8—504 of this title by transferring the financial asset or interest therein to the purchaser; and
(4) the purchaser is not protected under subsection (e) of this section.
The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.
(e) An action based on the entitlement holder’s property interest with respect to a particular financial asset under subsection (a) of this section, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary’s obligations under section 8—504 of this title. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997.)

Structure Vermont Statutes

Vermont Statutes

Title 9A - Uniform Commercial Code

Article 8 - Investment Securities

§ 8—101. Short title

§ 8—102. Definitions

§ 8—103. Rules for determining whether certain obligations and interests are securities or financial assets

§ 8—104. Acquisition of security or financial asset or interest therein

§ 8—105. Notice of adverse claim

§ 8—106. Control

§ 8—107. Whether indorsement, 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

§ 8—116. Securities intermediary as purchaser for value

§ 8—201. Issuer

§ 8—202. Issuer’s responsibility and defenses; notice of defect or defense

§ 8—203. Staleness as notice of defect or defense

§ 8—204. Effect of issuer’s restriction on transfer

§ 8—205. Effect of unauthorized signature on security certificate

§ 8—206. Completion or alteration of security certificate

§ 8—207. Rights and duties of issuer with respect to registered owners

§ 8—208. Effect of signature of authenticating trustee, registrar, or transfer agent

§ 8—209. Issuer’s lien

§ 8—210. Overissue

§ 8—301. Delivery

§ 8—302. Rights of purchaser

§ 8—303. Protected purchaser

§ 8—304. Indorsement

§ 8—305. Instruction

§ 8—306. Effect of guaranteeing signature, indorsement, or instruction

§ 8—307. Purchaser’s right to requisites for registration of transfer

§ 8—401. Duty of issuer to register transfer

§ 8—402. Assurance that indorsement or instruction is effective

§ 8—403. Demand that issuer not register transfer

§ 8—404. Wrongful registration

§ 8—405. Replacement of lost, destroyed, or wrongfully taken security certificate

§ 8—406. Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate

§ 8—407. Authenticating trustee, transfer agent, and registrar

§ 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—508. Duty of securities intermediary to change entitlement holder’s position to other form of security holding

§ 8—509. Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder

§ 8—510. Rights of purchaser of security entitlement from entitlement holder

§ 8—511. Priority among security interests and entitlement holders