70A-9a-206 - Security interest arising in purchase or delivery of financial asset. - Utah Statutes

70A-9a-206. Security interest arising in purchase or delivery of financial asset.
(1) A security interest in favor of a securities intermediary attaches to a person's securityentitlement if:
(a) the person buys a financial asset through the securities intermediary in a transaction inwhich the person is obligated to pay the purchase price to the securities intermediary at the timeof the purchase; and
(b) the securities intermediary credits the financial asset to the buyer's securities accountbefore the buyer pays the securities intermediary.
(2) The security interest described in Subsection (1) secures the person's obligation to payfor the financial asset.
(3) A security interest in favor of a person that delivers a certificated security or otherfinancial asset represented by a writing attaches to the security or other financial asset if:
(a) the security or other financial asset:
(i) in the ordinary course of business is transferred by delivery with any necessaryindorsement or assignment; and
(ii) is delivered under an agreement between persons in the business of dealing with suchsecurities or financial assets; and
(b) the agreement calls for delivery against payment.
(4) The security interest described in Subsection (3) secures the obligation to makepayment for the delivery.

Enacted by Chapter 252, 2000 General Session