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Can you summarize MNST 336.8-503?
UNIFORM COMMERCIAL CODE > PROPERTY INTEREST OF ENTITLEMENT HOLDER IN FINANCIAL ASSET HELD BY SECURITIES INTERMEDIARY.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the property interest of entitlement holders in financial assets held by securities intermediaries. It states that all interests in a financial asset held by a securities intermediary are held for the entitlement holders and are not the property of the securities intermediary. These interests are not subject to claims of creditors of the securities intermediary, except as provided in section 336.8-511. The entitlement holder’s property interest is a pro rata interest in all interests in the financial asset held by the securities intermediary, regardless of when the entitlement holder or the securities intermediary acquired them. The entitlement holder can enforce their property interest against the securities intermediary by exercising their rights under sections 336.8-505 through 336.8-508. If certain conditions are met, the entitlement holder’s property interest can also be enforced against a purchaser of the financial asset. However, an action based on the entitlement holder’s property interest cannot be asserted against a purchaser who gives value, obtains control, and does not collude with the securities intermediary in violating its obligations under section 336.8-504.
Whom does it apply to?
Securities intermediaries and entitlement holders
What does it govern?
Property interest of entitlement holder in financial asset held by securities intermediary
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota