N.Y. Uniform Commercial Code Law § 8-501: Securities Account; Acquisition of Security Entitlement from Securities Intermediary

Section 8--501. Securities Account; Acquisition of Security Entitlement

from Securities Intermediary.

(a) "Securities account" means an account to which a financial asset

is or may be credited in accordance with an agreement under which the

person maintaining the account undertakes to treat the person for whom

the account is maintained as entitled to exercise the rights that

comprise the financial asset.

(b) Except as otherwise provided in subsections (d) and (e), a person

acquires a security entitlement if a securities intermediary:

(1) indicates by book entry that a financial asset has been

credited to the person's securities account;

(2) receives a financial asset from the person or acquires a

financial asset for the person and, in either case, accepts

it for credit to the person's securities account; or

(3) becomes obligated under other law, regulation, or rule to

credit a financial asset to the person's securities account.

(c) If a condition of subsection (b) has been met, a person has a

security entitlement even though the securities intermediary does not

itself hold the financial asset.

(d) If a securities intermediary holds a financial asset for another

person, and the financial asset is registered in the name of, payable to

the order of, or specially indorsed to the other person, and has not

been indorsed to the securities intermediary or in blank, the other

person is treated as holding the financial asset directly rather than as

having a security entitlement with respect to the financial asset.

(e) Issuance of a security is not establishment of a security

entitlement.