§651-47 Levy on and execution sale of investment securities; garnishment the proper procedure when the security is subject to right of possession of third party. (a) A security or any share or other interest evidenced thereby which is outstanding and not in the possession of a third party who has a security interest, lien, or right of retention therein which entitled the third party to possession shall be levied upon under a writ of execution by being actually seized by the officer executing the writ.

At any time after the issuance of the writ, upon application of the judgment creditor or the officer executing the writ and upon due notice to the defendant or other person having possession of the security without being entitled thereto under a security interest, lien, or right of retention, the court or judge may summarily direct the defendant or such other person so having possession of the security to produce the same and deliver it to the officer.

In the case of a levy for execution, the security levied upon shall be advertised for sale and sold in the manner provided in section 651-43. After the sale the levying officer shall deliver to the purchaser the security endorsed or assigned by the levying officer as the agent of the judgment debtor, which delivery and endorsement or assignment shall entitle the purchaser to all the right, title, and interest of the judgment debtor in the security and to registration of the transfer as provided in chapter 490, the Uniform Commercial Code, article 8. This subsection shall apply to any security which is either within the State or which is in the possession of an owner or other person subject to the jurisdiction of this State.

(b) A security or any share or other interest evidenced thereby which is outstanding and in the possession of a person who is entitled to such possession under a security interest or lien or other right of retention therein shall be reached by garnishment as provided in chapter 652. [L 1927, c 269, pt of §1; RL 1935, §4150; am L 1939, c 76, §1; RL 1945, §10177; RL 1955, §233-46; am L 1966, c 18, §7; HRS §651-47; gen ch 1985]

Law Journals and Reviews

Attachment or Levy of a Security Under the Uniform Commercial Code. 4 HBJ, no. 3, at 16 (1966).