336.9-206 Security interest arising in purchase or delivery of financial asset.
(a) Security interest when person buys through securities intermediary. 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) Security interest secures obligation to pay for financial asset. The security interest described in subsection (a) secures the person's obligation to pay for the financial asset.
(c) Security interest in payment against delivery transaction. 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 endorsement 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) Security interest secures obligation to pay for delivery. The security interest described in subsection (c) secures the obligation to make payment for the delivery.
HIST: 2000 c 399 art 1 s 16
* NOTE: This section, as added by Laws 2000, chapter 399, *article 1, section 16, is effective July 1, 2001. Laws 2000, *chapter 399, article 1, section 130.
* NOTE: Minnesota Statutes 1998, section 336.9-206, which *reads as follows, is repealed July 1, 2001. Laws 2000, chapter *399, article 1, section 130.
* "336.9-206 Agreement not to assert defenses against *assignee; modification of sales warranties where security *agreement exists.
* (1) Subject to any statute or decision which establishes a *different rule for buyers or lessees of consumer goods, an *agreement by a buyer or lessee not to assert against an assignee *any claim or defense which the buyer or lessee may have against *the seller or lessor is enforceable by an assignee who takes an *assignment for value, in good faith and without notice of a *claim or defense, except as to defenses of a type which may be *asserted against a holder in due course of a negotiable *instrument under the article on commercial paper (article 3). A *buyer who as part of one transaction signs both a negotiable *instrument and a security agreement makes such an agreement.
* (2) When a seller retains a purchase money security *interest in goods the article on sales (article 2) governs the *sale and any disclaimer, limitation or modification of the *seller's warranties."
SUBPART 2. RIGHTS AND DUTIES
Official Publication of the State of Minnesota
Revisor of Statutes