Title 34.1 Uniform Commercial Code

34.1-9-328. Priority of security interests in investment property.

(a) The following rules govern priority among conflicting security interests in the same investment property: (i) A security interest held by a secured party having control of investment property under section 34.1-9-106 has priority over a security interest held by a secured party that does not have control of the investment property; (ii) Except as otherwise provided in paragraphs (iii) and (iv), conflicting security interests held by secured parties each of which has control under section 34.1-9-106 rank according to priority in time of: (A) If the collateral is a security, obtaining control; (B) If the collateral is a security entitlement carried in a securities account and: (I) If the secured party obtained control under section 34.1-8-106(d)(i), the secured party's becoming the person for which the securities account is maintained; (II) If the secured party obtained control under section 34.1-8-106(d)(ii), the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or (III) If the secured party obtained control through another person under section 34.1-8-106(d)(iii), the time on which priority would be based under this paragraph if the other person were the secured party; or (C) If the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in section 34.1-9-106(b)(ii) with respect to commodity contracts carried or to be carried with the commodity intermediary. (iii) A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party; (iv) A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party; (v) A security interest in a certificated security in registered form which is perfected by taking delivery under section 34.1-9-313(a) and not by control under section 34.1-9-314 has priority over a conflicting security interest perfected by a method other than control; (vi) Conflicting security interests created by a broker, securities intermediary or commodity intermediary which are perfected without control under section 34.1-9-106 rank equally; (vii) In all other cases, priority among conflicting security interests in investment property is governed by sections 34.1-9-322 and 34.1-9-323.