Section 8--501. Securities Account; Acquisition of Security Entitlement

from Securities Intermediary.

(a) "Securities account" means an account to which a financial asset
is or may be credited in accordance with an agreement under which the
person maintaining the account undertakes to treat the person for whom
the account is maintained as entitled to exercise the rights that
comprise the financial asset.

(b) Except as otherwise provided in subsections (d) and (e), a person
acquires a security entitlement if a securities intermediary:

(1) indicates by book entry that a financial asset has been

credited to the person's securities account;

(2) receives a financial asset from the person or acquires a

financial asset for the person and, in either case, accepts

it for credit to the person's securities account; or

(3) becomes obligated under other law, regulation, or rule to

credit a financial asset to the person's securities account.

(c) If a condition of subsection (b) has been met, a person has a
security entitlement even though the securities intermediary does not
itself hold the financial asset.

(d) If a securities intermediary holds a financial asset for another
person, and the financial asset is registered in the name of, payable to
the order of, or specially indorsed to the other person, and has not
been indorsed to the securities intermediary or in blank, the other
person is treated as holding the financial asset directly rather than as
having a security entitlement with respect to the financial asset.

(e) Issuance of a security is not establishment of a security
entitlement.