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Can you summarize MNST 336.8-511?
UNIFORM COMMERCIAL CODE > PRIORITY AMONG SECURITY INTERESTS AND ENTITLEMENT HOLDERS.
Short Summary
This provision, found in the Minnesota Statutes under the Uniform Commercial Code, governs the priority of claims among securities intermediaries, entitlement holders, and creditors. Generally, if a securities intermediary does not have sufficient interests in a financial asset to satisfy both its obligations to entitlement holders and its obligation to a creditor with a security interest in that asset, the claims of entitlement holders take priority over the claim of the creditor. However, if the creditor has control over the financial asset, their claim takes priority over the claims of entitlement holders. Additionally, if a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders and its obligation to a creditor with a security interest, the claim of the creditor takes priority over the claims of entitlement holders. This provision aims to establish the order of priority in resolving competing claims among these parties.
Whom does it apply to?
Securities intermediaries, entitlement holders, and creditors
What does it govern?
Priority among security interests and entitlement holders
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota