§ 8.9A-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:
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
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.
History
This law was first created in 1996. The record of its establishment is cataloged in chapter 216 of that year’s edition of “Acts of Assembly,” the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by “The Acts of Assembly,” a state publication, by year and chapter. Those modifications that can be read on the General Assembly’s website will be linked accordingly. That modification is as follows: in 2000, chapter 1007.
1996, c. 216, § 8.9-116; 2000, c. 1007.