2006 New York Code - Priority Among Security Interests And Entitlement Holders.

 
  Section 8--511. Priority   Among   Security  Interests  and  Entitlement
                    Holders.
    (a) Except as otherwise provided in subsections  (b)  and  (c),  if  a
  securities   intermediary  does  not  have  sufficient  interests  in  a
  particular  financial  asset  to  satisfy  both   its   obligations   to
  entitlement  holders  who  have  security entitlements to that financial
  asset and its obligation to a creditor of  the  securities  intermediary
  who  has  a  security  interest  in  that financial asset, the claims of
  entitlement holders, other than the creditor,  have  priority  over  the
  claim of the creditor.
    (b) A  claim  of  a  creditor  of  a securities intermediary who has a
  security interest in a financial asset held by a securities intermediary
  has priority over claims of the  securities  intermediary's  entitlement
  holders  who  have  security entitlements with respect to that financial
  asset if the creditor has control over the financial asset.
    (c) If a clearing  corporation  does  not  have  sufficient  financial
  assets  to  satisfy both its obligations to entitlement holders who have
  security  entitlements  with  respect  to  a  financial  asset  and  its
  obligation  to a creditor of the clearing corporation who has a security
  interest in that financial asset, the claim of the creditor has priority
  over the claims of entitlement holders.