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355.9-206 Security interest arising in purchase or delivery of financial asset.
(1)
(2)
(3)
(4)
A security interest in favor of a securities intermediary attaches to a person's
security entitlement if:
(a) The person buys a financial asset through the securities intermediary in a
transaction in which the person is obligated to pay the purchase price to the
securities intermediary at the time of the purchase; and
(b) The securities intermediary credits the financial asset to the buyer's securities
account before the buyer pays the securities intermediary.
The security interest described in subsection (1) of this section secures the person's
obligation to pay for the financial asset.
A security interest in favor of a person that delivers a certificated security or other
financial asset represented by a writing attaches to the security or other financial
asset if:
(a) The security or other financial asset:
1.
In the ordinary course of business is transferred by delivery with any
necessary indorsement or assignment; and
2.
Is delivered under an agreement between persons in the business of
dealing with such securities or financial assets; and
(b) The agreement calls for delivery against payment.
The security interest described in subsection (3) of this section secures the
obligation to make payment for the delivery.
Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 36, effective July 1, 2001.
-- Amended 1964 Ky. Acts ch. 130, sec. 22, effective July 1, 1964. -- Created 1958
Ky. Acts ch. 77, sec. 9-206, effective July 1, 1960.
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