                                 CODE OF VIRGINIA

SECURITY INTEREST ARISING IN PURCHASE OR DELIVERY OF FINANCIAL ASSET (§
8.9A-206)

a. Security interest when person buys through securities intermediary. A
security interest in favor of a securities intermediary attaches to a
person&#8217;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&#8217;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&#8217;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:

   1. the security or other financial asset:

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

   2. the agreement calls for delivery against payment.

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: 1996, c. 216, § 8.9-116; 2000, c. 1007.