§ 57A-9-206 Interest in favor of securities intermediary--Interest in favor of person who delivers financial asset.

SD Codified L § 57A-9-206 (2019) (N/A)

Copy with citation

Copy as parenthetical citation

57A-9-206. Interest in favor of securities intermediary--Interest in favor of person who delivers financial asset. (a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if:

(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) The securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary .

(b) The security interest described in subsection (a) secures the person's obligation to pay for the financial asset.

(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) The security or other financial asset:

(A) In the ordinary course of business is transferred by delivery with any necessary indorsement or assignment; and

(B) Is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and

(2) The agreement calls for delivery against payment.

(d) The security interest described in subsection (c) secures the obligation to make payment for the delivery.

Source: SL 2000, ch 231.

Previous Section

§ 57A-9-205 Effect of debtor's right to use or dispose of collateral--Requirement of possession.

Next Section

§ 57A-9-207 Rights and duties of secured party having possession or control of collateral.