1997 Minnesota Statutes

     336.9-116 Security interest arising in purchase or 
  delivery of financial asset. 

    (1) If a person buys a financial asset through a securities 
 intermediary in a transaction in which the buyer is obligated to 
 pay the purchase price to the securities intermediary at the 
 time of the purchase, and the securities intermediary credits 
 the financial asset to the buyer's securities account before the 
 buyer pays the securities intermediary, the securities 
 intermediary has a security interest in the buyer's security 
 entitlement securing the buyer's obligation to pay.  A security 
 agreement is not required for attachment or enforceability of 
 the security interest, and the security interest is 
 automatically perfected. 

    (2) If a certificated security, or other financial asset 
 represented by a writing which in the ordinary course of 
 business is transferred by delivery with any necessary 
 endorsement or assignment is delivered pursuant to an agreement 
 between persons in the business of dealing with such securities 
 or financial assets and the agreement calls for delivery versus 
 payment, the person delivering the certificate or other 
 financial asset has a security interest in the certificated 
 security or other financial asset securing the seller's right to 
 receive payment.  A security agreement is not required for 
 attachment or enforceability of the security interest, and the 
 security interest is automatically perfected.  

    HIST: 1995 c 194 art 2 s 5