§ 554.8503

554.8503 Property interest of entitlement holder in financial asset held by securities intermediary. 1. 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 thesecurities 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 ofthe securities intermediary, except as otherwise provided in section 554.8511. 2. An entitlement holder’s property interest with respect to a particular financial asset under subsection 1 is a pro rata property interest in all interests in that financial asset heldby the securities intermediary, without regard to the time the entitlement holder acquiredthe security entitlement or the time the securities intermediary acquired the interest in thatfinancial asset. 3. An entitlement holder’s property interest with respect to a particular financial asset under subsection 1 may be enforced against the securities intermediary only by exercise ofthe entitlement holder’s rights under sections 554.8505 through 554.8508. 4.

to a particular financial asset under subsection 1 may be enforced against the securities intermediary only by exercise ofthe entitlement holder’s rights under sections 554.8505 through 554.8508. 4. a. An entitlement holder’s property interest with respect to a particular financial asset under subsection 1 may be enforced against a purchaser of the financial asset or interesttherein only if: (1) insolvency proceedings have been initiated by or against the securities intermediary;(2) 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; (3) the securities intermediary violated its obligations under section 554.8504 by transferring the financial asset or interest therein to the purchaser; and (4) the purchaser is not protected under subsection 5.b. 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 financialasset, or interest therein, from the purchaser.

idator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financialasset, or interest therein, from the purchaser. If the trustee or other liquidator elects not topursue that right, an entitlement holder whose security entitlement remains unsatisfied hasthe right to recover its interest in the financial asset from the purchaser. 5. An action based on the entitlement holder’s property interest with respect to a particular financial asset under subsection 1, whether framed in conversion, replevin,constructive trust, equitable lien, or other theory, may not be asserted against any purchaserof a financial asset or interest therein who gives value, obtains control, and does not actin collusion with the securities intermediary in violating the securities intermediary’sobligations under section 554.8504. 96 Acts, ch 1138, §50, 84; 2012 Acts, ch 1023, §157Referred to in §554.8104 Sat Dec 23 01:58:44 2023 Iowa Code 2024, Section 554.8503 (25, 0)