(a) Except as otherwise provided in subsections (b) and (c) of this section, if a
securities intermediary does not have sufficient interests in a particular financial
asset to satisfy both its obligations to entitlement holders who have security entitlements
to that financial asset and its obligation to a creditor of the securities intermediary
who has a security interest in that financial asset, the claims of entitlement holders,
other than the creditor, have priority over the claim of the creditor.
(b) A claim of a creditor of a securities intermediary who has a security interest
in a financial asset held by a securities intermediary has priority over claims of
the securities intermediary's entitlement holders who have security entitlements with
respect to that financial asset if the creditor has control over the financial asset.
(c) If a clearing corporation does not have sufficient financial assets to satisfy
both its obligations to entitlement holders who have security entitlements with respect
to a financial asset and its obligation to a creditor of the clearing corporation
who has a security interest in that financial asset, the claim of the creditor has
priority over the claims of entitlement holders.
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