2006 New York Code - Rights Of Purchaser Of Security Entitlement From Entitlement Holder.

 
  Section 8--510. Rights   of   Purchaser  of  Security  Entitlement  from
                    Entitlement Holder.
    (a)  In a case not covered by the priority rules in Article 9  or  the
  rules stated in subsection (c), an action based on an adverse claim to a
  financial  asset  or security entitlement, whether framed in conversion,
  replevin, constructive trust, equitable lien, or other theory,  may  not
  be asserted against a person who purchases a security entitlement, or an
  interest  therein,  from  an  entitlement  holder if the purchaser gives
  value, does not have notice of the adverse claim, and obtains control.
    (b) If an adverse claim  could  not  have  been  asserted  against  an
  entitlement  holder  under  Section  8--502, the adverse claim cannot be
  asserted against a person who purchases a security  entitlement,  or  an
  interest therein, from the entitlement holder.
    (c)  In  a  case  not  covered  by  the priority rules in Article 9, a
  purchaser for value of a security entitlement, or an  interest  therein,
  who  obtains  control  has  priority  over  a  purchaser  of  a security
  entitlement, or an interest therein, who does not obtain control. Except
  as otherwise provided in subsection (d),  purchasers  who  have  control
  rank according to priority in time of:
         (1) the  purchaser's  becoming the person for whom the securities
             account, in which the security  entitlement  is  carried,  is
             maintained,  if  the purchaser obtained control under Section
             8--106(d)(1);
         (2) the securities intermediary's agreement to  comply  with  the
             purchaser's  entitlement  orders  with  respect  to  security
             entitlements carried or  to  be  carried  in  the  securities
             account  in which the security entitlement is carried, if the
             purchaser obtained control under Section 8--106(d)(2); or
         (3) if the purchaser  obtained  control  through  another  person
             under  Section 8--106(d)(3), the time on which priority would
             be based under this subsection if the other person  were  the
             secured party.
    (d)  A  securities  intermediary  as  purchaser  has  priority  over a
  conflicting purchaser who has control unless  otherwise  agreed  by  the
  securities intermediary.