1. (a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if:

   1. (1) the person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and
   2. (2) the securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.
2. (b) The security interest described in subsection (a) secures the person's obligation to pay for the financial asset.

3. (c) A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:

   1. (1) the security or other financial asset:

      1. (A) in the ordinary course of business is transferred by delivery with any necessary indorsement or assignment; and
      2. (B) is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and
   2. (2) the agreement calls for delivery against payment.
4. (d) The security interest described in subsection (c) secures the obligation to make payment for the delivery.

HISTORY: 1962 Code Section 10.9-206; 1966 (54) 2716; 1988 Act No. 494, Section 5; 2001 Act No; 67, Section 12. Subpart 2 Rights and Duties