(a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.
(b) Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (a) of this section.
(c) A securities intermediary satisfies the duty in subsection (a) of this section if:
(1) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.
(d) This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.
Structure West Virginia Code
Chapter 46. Uniform Commercial Code
Article 8. Investment Securities
§46-8-104. Acquisition of Security or Financial Asset or Interest Therein
§46-8-105. Notice of Adverse Claim
§46-8-107. Whether Indorsement, Instruction or Entitlement Order Is Effective
§46-8-108. Warranties in Direct Holding
§46-8-109. Warranties in Indirect Holding
§46-8-110. Applicability; Choice of Law
§46-8-111. Clearing Corporation Rules
§46-8-112. Creditor's Legal Process
§46-8-113. Statute of Frauds Inapplicable
§46-8-114. Evidentiary Rules Concerning Certificated Securities
§46-8-115. Securities Intermediary and Others Not Liable to Adverse Claimant
§46-8-116. Securities Intermediary as Purchaser for Value
§46-8-202. Issuer's Responsibility and Defenses; Notice of Defect or Defense
§46-8-203. Staleness as Notice of Defect or Defense
§46-8-204. Effect of Issuer's Restriction on Transfer
§46-8-205. Effect of Unauthorized Signature on Security Certificate
§46-8-206. Completion or Alteration of Security Certificate
§46-8-207. Rights and Duties of Issuer With Respect to Registered Owners
§46-8-208. Effect of Signature of Authenticating Trustee, Registrar, or Transfer Agent
§46-8-302. Rights of Purchaser
§46-8-303. Protected Purchaser
§46-8-306. Effect of Guaranteeing Signature, Indorsement, or Instruction
§46-8-307. Purchaser's Right to Requisites for Registration of Transfer
§46-8-401. Duty of Issuer to Register Transfer
§46-8-402. Assurance That Indorsement or Instruction Is Effective
§46-8-403. Demand That Issuer Not Register Transfer
§46-8-404. Wrongful Registration
§46-8-405. Replacement of Lost, Destroyed, or Wrongfully Taken Security Certificate
§46-8-406. Obligation to Notify Issuer of Lost, Destroyed, or Wrongfully Taken Security Certificate
§46-8-407. Authenticating Trustee, Transfer Agent and Registrar
§46-8-501. Securities Account; Acquisition of Security Entitlement From Securities Intermediary
§46-8-502. Assertion of Adverse Claim Against Entitlement Holder
§46-8-504. Duty of Securities Intermediary to Maintain Financial Asset
§46-8-505. Duty of Securities Intermediary With Respect to Payments and Distributions
§46-8-506. Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder
§46-8-507. Duty of Securities Intermediary to Comply With Entitlement Order
§46-8-510. Rights of Purchaser of Security Entitlement From Entitlement Holder
§46-8-511. Priority Among Security Interests and Entitlement Holders