(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
(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;
(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.
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