554.8511 Priority among security interests and entitlement holders. 1. Except as otherwise provided in subsections 2 and 3, if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations toentitlement holders who have security entitlements to that financial asset and its obligationto a creditor of the securities intermediary who has a security interest in that financial asset,the claims of entitlement holders, other than the creditor, have priority over the claim of thecreditor. 2. A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securitiesintermediary’s entitlement holders who have security entitlements with respect to thatfinancial asset if the creditor has control over the financial asset. 3. If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financialasset and its obligation to a creditor of the clearing corporation who has a security interestin that financial asset, the claim of t holders who have security entitlements with respect to a financialasset and its obligation to a creditor of the clearing corporation who has a security interestin that financial asset, the claim of the creditor has priority over the claims of entitlementholders. 96 Acts, ch 1138, §58, 84Referred to in §554.8503 Sat Dec 23 01:59:04 2023 Iowa Code 2024, Section 554.8511 (25, 0)
Iowa Legal Code