6.2-891 - (Effective October 1, 2010) Perfection of certain security interests. - Virginia Statutes

§ 6.2-891. (Effective October 1, 2010) Perfection of certain securityinterests.

When securities are sold by a bank subject to an obligation of repurchase,any security interest or interest of ownership therein may be perfected:

1. As specified by Title 8.8A or Title 8.9A;

2. By designation to the person holding physical custody thereof, which shallinclude a person keeping the master records, in case of securities identifiedby book entry only, that certain securities identified by serial number ordollar amount are held for the benefit of third parties other than the bank,who may, but need not, be identified by name; or

3. By physical separation on the premises of the bank in a separate drawer,compartment, or other facility. The bank may, from time to time, instruct anythird party holding such securities that the previously identified securitiesor an amount of such securities previously identified as pledged or belongingto third parties have been released from such pledge by payment of all orpart of the amount due, or have been repurchased. The records of the bankshall identify the persons who are pledgees or owners of such securities.Book-entry securities held in a bank's customer-safekeeping account, used forthe same purpose, at the Federal Reserve Bank, notwithstanding that othercustomer securities are held in the same account, shall be deemed incompliance with subdivision 2, provided such securities are identified in thebank's records as required by this section.

(1982, c. 429, § 6.1-81; 1983, c. 250; 1986, c. 320; 2010, c. 794.)