400.9-206. Security interest arising in purchase or delivery of financial asset. - Missouri Statutes

Security interest arising in purchase or delivery of financial asset.

400.9-206. (a) A security interest in favor of a securitiesintermediary attaches to a person's security entitlement if:

(1) The person buys a financial asset through the securitiesintermediary in a transaction in which the person is obligated to pay thepurchase price to the securities intermediary at the time of the purchase;and

(2) The securities intermediary credits the financial asset to thebuyer's securities account before the buyer pays the securitiesintermediary.

(b) The security interest described in subsection (a) secures theperson's obligation to pay for the financial asset.

(c) A security interest in favor of a person that delivers acertificated security or other financial asset represented by a writingattaches to the security or other financial asset if:

(1) The security or other financial asset:

(A) In the ordinary course of business is transferred by deliverywith any necessary endorsement or assignment; and

(B) Is delivered under an agreement between persons in the businessof dealing with such securities or financial assets; and

(2) The agreement calls for delivery against payment.

(d) The security interest described in subsection (c) secures theobligation to make payment for the delivery.

(L. 1963 p. 503 § 9-206, A.L. 1969 p. 78, A.L. 2001 S.B. 288)

Effective 7-01-01