California Commercial Code

§ 8116

COM § 8116 Effective Jan 1, 1997Div. 8 · Ch. 1

Statute text

A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset in favor of an entitlement holder.

Legislative history

Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.