2006 Minnesota Statutes

336.8-510 RIGHTS OF PURCHASER OF SECURITY ENTITLEMENT FROM
ENTITLEMENT HOLDER.
(a) In a case not covered by the priority rules in article 9 or the rules stated in subsection (c),
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. Except as otherwise provided in
subsection (d), purchasers who have control rank according to priority in time of:
(1) the purchaser's becoming the person for whom the securities account, in which the
security entitlement is carried, is maintained, if the purchaser obtained control under section
336.8-106(d)(1);
(2) the securities intermediary's agreement to comply with the purchaser's entitlement orders
with respect to security entitlements carried or to be carried in the securities account in which the
security entitlement is carried, if the purchaser obtained control under section 336.8-106(d)(2); or
(3) if the purchaser obtained control through another person under section 336.8-106(d)(3),
the time on which priority would be based under this subsection if the other person were the
secured party.
(d) A securities intermediary as purchaser has priority over a conflicting purchaser who has
control, unless otherwise agreed by the securities intermediary.
History: 1995 c 194 art 1 s 50; 2000 c 399 art 2 s 20