§ 25-8-511. Priority among security interests and entitlement holders. - North Carolina Statutes

§25‑8‑511.  Priority among security interests and entitlementholders.

(a)        Except as otherwiseprovided in subsections (b) and (c) of this section, if a securitiesintermediary does not have sufficient interests in a particular financial assetto satisfy both its obligations to entitlement holders who have securityentitlements to that financial asset and its obligation to a creditor of thesecurities intermediary who has a security interest in that financial asset,the claims of entitlement holders, other than the creditor, have priority overthe claim of the creditor.

(b)        A claim of acreditor of a securities intermediary who has a security interest in afinancial asset held by a securities intermediary has priority over claims ofthe securities intermediary's entitlement holders who have securityentitlements with respect to that financial asset if the creditor has controlover the financial asset.

(c)        If a clearingcorporation does not have sufficient financial assets to satisfy both itsobligations to entitlement holders who have security entitlements with respectto a financial asset and its obligation to a creditor of the clearingcorporation who has a security interest in that financial asset, the claim ofthe creditor has priority over the claims of entitlement holders. (1997‑181,s. 1.)