400.8-510. Rights of purchaser of security entitlement from entitlement holder.

MISSOURI STATUTES AND CODES

400.8-510. Rights of purchaser of security entitlement from entitlement holder.

Rights of purchaser of security entitlement from entitlement holder.

400.8-510. (a) In a case not covered by the priority rules inarticle 9 or the rules stated in subsection (c), an action based on anadverse claim to a financial asset or security entitlement, whether framedin conversion, replevin, constructive trust, equitable lien or othertheory, may not be asserted against a person who purchases a securityentitlement, or an interest therein, from an entitlement holder if thepurchaser gives value, does not have notice of the adverse claim, andobtains control.

(b) If an adverse claim could not have been asserted against anentitlement holder under section 400.8-502, the adverse claim cannot beasserted against a person who purchases a security entitlement, or aninterest therein, from the entitlement holder.

(c) In a case not covered by the priority rules in article 9 of thischapter, a purchaser for value of a security entitlement, or an interesttherein, who obtains control has priority over a purchaser of a securityentitlement, or an interest therein, who does not obtain control. Exceptas otherwise provided in subsection (d), purchasers who have control rankaccording to priority in time of:

(1) the purchaser's becoming the person for whom the securitiesaccount, in which the security entitlement is carried, is maintained, ifthe purchaser obtained control under section 400.8-106(d)(1);

(2) the securities intermediary's agreement to comply with thepurchaser's entitlement orders with respect to security entitlementscarried or to be carried in the securities account in which the securityentitlement is carried, if the purchaser obtained control under section400.8-106(d)(2); or

(3) if the purchaser obtained control through another person undersection 400.8-106(d)(3), the time on which priority would be based underthis subsection if the other person were the secured party.

(d) A securities intermediary as purchaser has priority over aconflicting purchaser who has control unless otherwise agreed by thesecurities intermediary.