70A-8-501 - Securities account -- Acquisition of security entitlement from securities intermediary. - Utah Statutes

70A-8-501. Securities account -- Acquisition of security entitlement from securitiesintermediary.
(1) "Securities account" means an account to which a financial asset is or may be creditedin accordance with an agreement under which the person maintaining the account undertakes totreat the person for whom the account is maintained as entitled to exercise the rights that comprisethe financial asset.
(2) Except as otherwise provided in Subsections (4) and (5), a person acquires a securityentitlement if a securities intermediary:
(a) indicates by book entry that a financial asset has been credited to the person'ssecurities account;
(b) receives a financial asset from the person or acquires a financial asset for the personand, in either case, accepts it for credit to the person's securities account; or
(c) becomes obligated under other law, regulation, or rule to credit a financial asset to theperson's securities account.
(3) If a condition of Subsection (2) has been met, a person has a security entitlement eventhough the securities intermediary does not itself hold the financial asset.
(4) If a securities intermediary holds a financial asset for another person, and the financialasset is registered in the name of, payable to the order of, or specially indorsed to the otherperson, and has not been indorsed to the securities intermediary or in blank, the other person istreated as holding the financial asset directly rather than as having a security entitlement withrespect to the financial asset.
(5) Issuance of a security is not establishment of a security entitlement.

Enacted by Chapter 204, 1996 General Session