400.8-501. Securities account--acquisition of security entitlement from securities intermediary. - Missouri Statutes

Securities account--acquisition of security entitlement fromsecurities intermediary.

400.8-501. (a) "Securities account" means an account to which afinancial asset is or may be credited in accordance with an agreement underwhich the person maintaining the account undertakes to treat the person forwhom the account is maintained as entitled to exercise the rights thatcomprise the financial asset.

(b) Except as otherwise provided in subsections (d) and (e), a personacquires a security entitlement if a securities intermediary:

(1) Indicates by book entry that a financial asset has been creditedto the person's securities account;

(2) Receives a financial asset from the person or acquires afinancial asset for the person and, in either case, accepts it for creditto the person's securities account; or

(3) Becomes obligated under other law, regulation, or rule to credita financial asset to the person's securities account.

(c) If a condition of subsection (b) has been met, a person has asecurity entitlement even though the securities intermediary does notitself hold the financial asset.

(d) If a securities intermediary holds a financial asset for anotherperson, and the financial asset is registered in the name of, payable tothe order of, or specially indorsed to the other person, and has not beenindorsed to the securities intermediary or in blank, the other person istreated as holding the financial asset directly rather than as having asecurity entitlement with respect to the financial asset.

(e) Issuance of a security is not establishment of a securityentitlement.

(L. 1997 S.B. 6)