2007 Minnesota Statutes

336.8-511 PRIORITY AMONG SECURITY INTERESTS AND ENTITLEMENT
HOLDERS.
(a) Except as otherwise provided in subsections (b) and (c), 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.
History: 1995 c 194 art 1 s 51