{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.8A-503.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.8A-503.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.8A-503.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.8A-503.html"}],"law_id":80721,"edition_id":1,"section_id":80721,"structure_id":15693,"section_number":"8.8A-503","catch_line":"Property interest of entitlement holder in financial asset held by securities intermediary","history":"1996, c. 216.","full_text":"a\n\nTo the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in § 8.8A-511.b\n\nAn entitlement holder’s property interest with respect to a particular financial asset under subsection (a) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.c\n\nAn entitlement holder’s property interest with respect to a particular financial asset under subsection (a) may be enforced against the securities intermediary only by exercise of the entitlement holder’s rights under §§ 8.8A-505 through 8.8A-508.d\n\nAn entitlement holder’s property interest with respect to a particular financial asset under subsection (a) may be enforced against a purchaser of the financial asset or interest therein only if:1\n\ninsolvency proceedings have been initiated by or against the securities intermediary;2\n\nthe securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;3\n\nthe securities intermediary violated its obligations under § 8.8A-504 by transferring the financial asset or interest therein to the purchaser; and4\n\nthe purchaser is not protected under subsection (e). The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.e\n\nAn action based on the entitlement holder’s property interest with respect to a particular financial asset under subsection (a), whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary’s obligations under § 8.8A-504.","order_by":null,"text":{"0":{"id":289360,"text":"To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in § 8.8A-511.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":289361,"text":"An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":289362,"text":"An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) may be enforced against the securities intermediary only by exercise of the entitlement holder’s rights under §§ 8.8A-505 through 8.8A-508.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":289363,"text":"An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) may be enforced against a purchaser of the financial asset or interest therein only if:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"d1"},"4":{"id":289364,"text":"insolvency proceedings have been initiated by or against the securities intermediary;","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"d2"},"5":{"id":289365,"text":"the securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"d3"},"6":{"id":289366,"text":"the securities intermediary violated its obligations under § 8.8A-504 by transferring the financial asset or interest therein to the purchaser; and","type":"section","prefixes":["d","3"],"prefix":"3","entire_prefix":"d3","prefix_anchor":"d3","level":2,"prior_prefix":"d2","next_prefix":"d4"},"7":{"id":289367,"text":"the purchaser is not protected under subsection (e). The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.","type":"section","prefixes":["d","4"],"prefix":"4","entire_prefix":"d4","prefix_anchor":"d4","level":2,"prior_prefix":"d3","next_prefix":"e"},"8":{"id":289368,"text":"An action based on the entitlement holder’s property interest with respect to a particular financial asset under subsection (a), whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary’s obligations under § 8.8A-504.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d4"}},"ancestry":[{"id":15693,"edition_id":1,"name":"Security Entitlements","identifier":"5","label":"part","depth":2,"order_by":1,"parent_id":13421,"metadata":{},"date_created":"2026-06-26 03:58:00","date_modified":"2026-06-26 03:58:00","permalink":{"id":283781,"object_type":"structure","relational_id":15693,"identifier":"5","token":"8.8A\/5","url":"\/8.8A\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13421,"edition_id":1,"name":"Commercial Code \u2014 Investment Securities","identifier":"8.8A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:52","date_modified":"2026-06-26 03:44:52","permalink":{"id":283611,"object_type":"structure","relational_id":13421,"identifier":"8.8A","token":"8.8A","url":"\/8.8A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68902,"structure_id":15693,"section_number":"8.8A-501","catch_line":"Securities account; acquisition of security entitlement from securities intermediary","url":"\/8.8A-501\/","token":"8.8A\/5\/8.8A-501","metadata":false},{"id":72041,"structure_id":15693,"section_number":"8.8A-502","catch_line":"Assertion of adverse claim against entitlement holder","url":"\/8.8A-502\/","token":"8.8A\/5\/8.8A-502","metadata":false},{"id":80721,"structure_id":15693,"section_number":"8.8A-503","catch_line":"Property interest of entitlement holder in financial asset held by securities intermediary","url":"\/8.8A-503\/","token":"8.8A\/5\/8.8A-503","metadata":false},{"id":74402,"structure_id":15693,"section_number":"8.8A-504","catch_line":"Duty of securities intermediary to maintain financial asset","url":"\/8.8A-504\/","token":"8.8A\/5\/8.8A-504","metadata":false},{"id":83716,"structure_id":15693,"section_number":"8.8A-505","catch_line":"Duty of securities intermediary with respect to payments and distributions","url":"\/8.8A-505\/","token":"8.8A\/5\/8.8A-505","metadata":false},{"id":60117,"structure_id":15693,"section_number":"8.8A-506","catch_line":"Duty of securities intermediary to exercise rights as directed by entitlement holder","url":"\/8.8A-506\/","token":"8.8A\/5\/8.8A-506","metadata":false},{"id":84341,"structure_id":15693,"section_number":"8.8A-507","catch_line":"Duty of securities intermediary to comply with entitlement order","url":"\/8.8A-507\/","token":"8.8A\/5\/8.8A-507","metadata":false},{"id":68419,"structure_id":15693,"section_number":"8.8A-508","catch_line":"Duty of securities intermediary to change entitlement holder's position to other form of security holding","url":"\/8.8A-508\/","token":"8.8A\/5\/8.8A-508","metadata":false},{"id":78803,"structure_id":15693,"section_number":"8.8A-509","catch_line":"Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder","url":"\/8.8A-509\/","token":"8.8A\/5\/8.8A-509","metadata":false},{"id":68145,"structure_id":15693,"section_number":"8.8A-510","catch_line":"Rights of purchaser of security entitlement from entitlement holder","url":"\/8.8A-510\/","token":"8.8A\/5\/8.8A-510","metadata":false},{"id":74506,"structure_id":15693,"section_number":"8.8A-511","catch_line":"Priority among security interests and entitlement holders","url":"\/8.8A-511\/","token":"8.8A\/5\/8.8A-511","metadata":false}],"previous_section":{"id":72041,"structure_id":15693,"section_number":"8.8A-502","catch_line":"Assertion of adverse claim against entitlement holder","url":"\/8.8A-502\/","token":"8.8A\/5\/8.8A-502","metadata":false},"next_section":{"id":74402,"structure_id":15693,"section_number":"8.8A-504","catch_line":"Duty of securities intermediary to maintain financial asset","url":"\/8.8A-504\/","token":"8.8A\/5\/8.8A-504","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.8A-503\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapter 216<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":74402,"section_number":"8.8A-504","catch_line":"Duty of securities intermediary to maintain financial asset","order_by":null,"url":"\/8.8A-504\/"},{"id":83716,"section_number":"8.8A-505","catch_line":"Duty of securities intermediary with respect to payments and distributions","order_by":null,"url":"\/8.8A-505\/"}],"permalink":{"id":283791,"object_type":"law","relational_id":80721,"identifier":"8.8A-503","token":"8.8A\/5\/8.8A-503","url":"\/8.8A-503\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.8A-503\/","token":"8.8A\/5\/8.8A-503","dublin_core":{"Title":"Property interest of entitlement holder in financial asset held by securities intermediary","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.8A-503","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors<\/span> of the securities intermediary, except as otherwise provided in § 8.8A-511<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) may be enforced against the securities intermediary only by exercise of the entitlement holder’s rights under §§ 8.8A-505<\/a> through 8.8A-508<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> An entitlement holder’s property interest with respect to a particular financial asset under subsection (a) may be enforced against a purchaser of the financial asset or interest therein only if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> insolvency proceedings have been initiated by or against the securities intermediary; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> the securities intermediary violated its obligations under § 8.8A-504<\/a> by transferring the financial asset or interest therein to the purchaser; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> the purchaser is not protected under subsection (e). The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> An action based on the entitlement holder’s property interest with respect to a particular financial asset under subsection (a), whether framed in conversion, replevin, constructive trust, equitable<\/span> lien<\/span>, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary’s obligations under § 8.8A-504<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROPERTY INTEREST OF ENTITLEMENT HOLDER IN FINANCIAL ASSET HELD BY SECURITIES\nINTERMEDIARY (\u00a7 8.8A-503)\n\na. To the extent necessary for a securities intermediary to satisfy all security\nentitlements with respect to a particular financial asset, all interests in that\nfinancial asset held by the securities intermediary are held by the securities\nintermediary for the entitlement holders, are not property of the securities\nintermediary, and are not subject to claims of creditors of the securities\nintermediary, except as otherwise provided in § 8.8A-511.\n\nb. An entitlement holder’s property interest with respect to a particular\nfinancial asset under subsection (a) is a pro rata property interest in all\ninterests in that financial asset held by the securities intermediary, without\nregard to the time the entitlement holder acquired the security entitlement or\nthe time the securities intermediary acquired the interest in that financial\nasset.\n\nc. An entitlement holder’s property interest with respect to a particular\nfinancial asset under subsection (a) may be enforced against the securities\nintermediary only by exercise of the entitlement holder’s rights under\n§§ 8.8A-505 through 8.8A-508.\n\nd. An entitlement holder’s property interest with respect to a particular\nfinancial asset under subsection (a) may be enforced against a purchaser of the\nfinancial asset or interest therein only if:\n\n 1. insolvency proceedings have been initiated by or against the securities\n intermediary;\n\n 2. the securities intermediary does not have sufficient interests in the\n financial asset to satisfy the security entitlements of all of its entitlement\n holders to that financial asset;\n\n 3. the securities intermediary violated its obligations under § 8.8A-504\n by transferring the financial asset or interest therein to the purchaser; and\n\n 4. the purchaser is not protected under subsection (e). The trustee or other\n liquidator, acting on behalf of all entitlement holders having security\n entitlements with respect to a particular financial asset, may recover the\n financial asset, or interest therein, from the purchaser. If the trustee or\n other liquidator elects not to pursue that right, an entitlement holder whose\n security entitlement remains unsatisfied has the right to recover its interest\n in the financial asset from the purchaser.\n\ne. An action based on the entitlement holder’s property interest with\nrespect to a particular financial asset under subsection (a), whether framed in\nconversion, replevin, constructive trust, equitable lien, or other theory, may\nnot be asserted against any purchaser of a financial asset or interest therein\nwho gives value, obtains control, and does not act in collusion with the\nsecurities intermediary in violating the securities intermediary’s\nobligations under § 8.8A-504.\n\nHISTORY: 1996, c. 216.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}