1997 Minnesota Statutes

     336.8-510 Rights of purchaser of security entitlement 
  from entitlement holder. 

    (a) An action based on an adverse claim to a financial 
 asset or security entitlement, whether framed in conversion, 
 replevin, constructive trust, equitable lien, or other theory, 
 may not be asserted against a person who purchases a security 
 entitlement, or an interest therein, from an entitlement holder 
 if the purchaser gives value, does not have notice of the 
 adverse claim, and obtains control.  

    (b) If an adverse claim could not have been asserted 
 against an entitlement holder under section 336.8-502, the 
 adverse claim cannot be asserted against a person who purchases 
 a security entitlement, or an interest therein, from the 
 entitlement holder.  

    (c) In a case not covered by the priority rules in article 
 9, a purchaser for value of a security entitlement, or an 
 interest therein, who obtains control has priority over a 
 purchaser of a security entitlement, or an interest therein, who 
 does not obtain control.  Purchasers who have control rank 
 equally, except that a securities intermediary as purchaser has 
 priority over a conflicting purchaser who has control, unless 
 otherwise agreed by the securities intermediary.  

    HIST: 1995 c 194 art 1 s 50