§ 47-9328 Priority of security interests in investment property

AZ Rev Stat § 47-9328 (2019) (N/A)
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47-9328. Priority of security interests in investment property

The following rules govern priority among conflicting security interests in the same investment property:

1. A security interest held by a secured party having control of investment property under section 47-9106 has priority over a security interest held by a secured party that does not have control of the investment property.

2. Except as otherwise provided in paragraphs 3 and 4 of this section, conflicting security interests held by secured parties each of which has control under section 47-9106 rank according to priority in time of:

(a) If the collateral is a security, obtaining control;

(b) If the collateral is a security entitlement carried in a securities account and:

(i) If the secured party obtained control under section 47-8106, subsection D, paragraph 1, the secured party's becoming the person for which the securities account is maintained;

(ii) If the secured party obtained control under section 47-8106, subsection D, paragraph 2, the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or

(iii) If the secured party obtained control through another person under section 47-8106, subsection D, paragraph 3, the time on which priority would be based under this paragraph if the other person were the secured party; or

(c) If the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in section 47-9106, subsection B, paragraph 2 with respect to commodity contracts carried or to be carried with the commodity intermediary.

3. A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.

4. A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.

5. A security interest in a certificated security in registered form that is perfected by taking delivery under section 47-9313, subsection A and not by control under section 47-9314 has priority over a conflicting security interest perfected by a method other than control.

6. Conflicting security interests that are created by a broker, securities intermediary or commodity intermediary and that are perfected without control under section 47-9106 rank equally.

7. In all other cases, priority among conflicting security interests in investment property is governed by sections 47-9322 and 47-9323.