California Commercial Code

§ 8504

COM § 8504 Effective Jan 1, 1997Div. 8 · Ch. 5

Statute text

(a)A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.

(b)Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subdivision (a).

(c)A securities intermediary satisfies the duty in subdivision (a) if it does either of the following:

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Legislative history

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