(810 ILCS 5/8-510)
Sec. 8-510.
Rights of purchaser of security
entitlement from entitlement holder.
(a) In a case not covered by the priority rules in Article 9 or the
rules stated in subsection (c), an
action based on an adverse claim to a financial asset or
security entitlement, whether framed in conversion, replevin, constructive
trust, equitable lien, or other theory, may not be asserted against a person
who purchases a security entitlement, or an interest therein, from an
entitlement holder if the purchaser gives value, does not have notice of the
adverse claim, and obtains control.
(b) If an adverse claim could not have been asserted against an
entitlement holder under Section 8-502, the adverse claim cannot be asserted
against a person who purchases a security entitlement, or an interest therein,
from the entitlement holder.
(c) In a case not covered by the priority rules in Article 9, a
purchaser for value of a security entitlement, or an interest therein, who
obtains control has priority over a purchaser of a security entitlement, or an
interest therein, who does not obtain control. Except as otherwise provided
in subsection (d), purchasers who have control rank
according to priority in time of:
(1) the purchaser's becoming the person for whom the |
| securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under Section 8-106(d)(1);
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(2) the securities intermediary's agreement to comply
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| with the purchaser's entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under Section 8-106(d)(2); or
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(3) if the purchaser obtained control through another
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| person under Section 8-106(d)(3), the time on which priority would be based under this subsection if the other person were the secured party.
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(d) A securities intermediary as purchaser
has priority over a conflicting purchaser who has control unless otherwise
agreed by the securities intermediary.
(Source: P.A. 91-893, eff. 7-1-01.)
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