                                 CODE OF VIRGINIA

SECURITIES ACCOUNT; ACQUISITION OF SECURITY ENTITLEMENT FROM SECURITIES
INTERMEDIARY (§ 8.8A-501)

a. &#8220;Securities account&#8221; means an account to which a financial asset
is or may be credited in accordance with an agreement under which the person
maintaining the account undertakes to treat the person for whom the account is
maintained as entitled to exercise the rights that comprise the financial asset.

b. Except as otherwise provided in subsections (d) and (e), a person acquires a
security entitlement if a securities intermediary:

   1. indicates by book entry that a financial asset has been credited to the
   person&#8217;s securities account;

   2. receives a financial asset from the person or acquires a financial asset
   for the person and, in either case, accepts it for credit to the
   person&#8217;s securities account; or

   3. becomes obligated under other law, regulation, or rule to credit a
   financial asset to the person&#8217;s securities account.

c. If a condition of subsection (b) has been met, a person has a security
entitlement even though the securities intermediary does not itself hold the
financial asset.

d. If a securities intermediary holds a financial asset for another person, and
the financial asset is registered in the name of, payable to the order of, or
specially endorsed to the other person, and has not been endorsed to the
securities intermediary or in blank, the other person is treated as holding the
financial asset directly rather than as having a security entitlement with
respect to the financial asset.

e. Issuance of a security is not establishment of a security entitlement.

HISTORY: 1996, c. 216.