The ABCs of the UCC : article 8: investment securities

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Where to find it

Law Library — 2nd Floor Collection (2nd floor)

Call Number
KF1070.Z95 R63 2014
Status
Available

Authors, etc.

Names:

Summary

This book is a primer to Article 8 of the UCC and is one of the books in The ABCs of the UCC series. It provides a guide to the current version of Article 8 of the Uniform Commercial Code (UCC), which governs the ownership and transfer of securities and, to a limited extent, other financial assets. This book also discusses the portions of UCC Article 9 that relate to security interests in these assets. Article 8 is concerned with the settlement of transactions in securities and with certain aspects of the relationships between issuers and investors, intermediaries and those for whom securities accounts are maintained, and sellers or pledgers and their purchasers. Other bodies of law complete the picture. Further resources on Article 9 and on the UCC as a whole (as well as on Article 8 itself) are listed in the bibliography of this book. This is a re-release of The ABCs of the UCC Article 8 that first published in 2004.

Contents

  • Foreword p. vii
  • Preface p. xi
  • Chapter 1 Introduction p. 1
  • A A Brief History p. 1
  • B The Direct and Indirect Holding Systems p. 4
  • Figure 1 Direct Holding System p. 5
  • Figure 2 Indirect Holding System p. 6
  • C Scope of the Two Systems p. 7
  • Chapter 2 Relationship of Issuer to Owner and Transferee p. 11
  • A Overview of Issuer's Responsibility and Defenses p. 12
  • B Particular Defects and Defenses p. 14
  • C Issuer's Lien and Issuer's Restriction on Transfer p. 17
  • D Issuer's Right to Disregard Unregistered Owner and Duty to Register Transfer p. 18
  • E Liability for Wrongful Registration p. 20
  • Chapter 3 Transfers in the Direct Holding System p. 23
  • A Mechanics of Transfer and Related Matters p. 23
  • Figure 3 Transfer of Possession of Certificate p. 25
  • Figure 4 Change in Registered Owner p. 25
  • B The Derivation and Negotiability Principles p. 25
  • Chapter 4 The Indirect Holding System p. 35
  • A Overview of Securities Entitlements p. 36
  • Figure 5 Typical Acquisition of a Security Entitlement p. 43
  • B Security Entitlement as in Personam Right: The Five Core Duties of a Securities Intermediary p. 44
  • 1 Duty to Maintain Financial Assets p. 44
  • 2 Duty to Obtain Payments or Distributions p. 48
  • 3 Duty to Exercise Rights as Directed p. 48
  • 4 Duty to Comply with Entitlement Orders p. 49
  • 5 Duty to Change Position to Other Form of Holding p. 51
  • C Security Entitlement as Property Interest: Rights of Entitlement Holder Vis-à-Vis Third Parties p. 52
  • 1 Rights Against Securities Intermediary and Fellow Entitlement Holders p. 52
  • 2 Rights Against Creditors of Securities Intermediary p. 56
  • 3 Rights Against Purchaser of Financial Asset p. 62
  • 4 Claims Against Entitlement Holder or its Transferees p. 65
  • Chapter 5 Security Interests in Investment Property p. 71
  • A Introduction to UCC Article 9 p. 71
  • B Creating and Perfecting Security Interests in Investment Property p. 73
  • 1 Attachment and Overview of Perfection p. 73
  • 2 Perfection in the Direct Holding System p. 76
  • 3 Perfection in the Indirect Holding System p. 78
  • 4 Commodity Contracts and Commodity Accounts p. 81
  • 5 Automatic Creation and Perfection for the "Broker's Lien" p. 82
  • 6 Perfection of Security Interests in Distributions and Other Proceeds p. 84
  • C Priorities p. 85
  • 1 Priority Based on Control or Possession p. 86
  • 2 Priority Based on Automatic Perfection p. 87
  • 3 Priority Based on the First-in-Time Principle p. 88
  • D Remedies p. 90
  • Chapter 6 Choice of Law and Complementary Regimes p. 95
  • A Article 8's Choice of Law Rules p. 96
  • B Article 9's Choice of Law Rules p. 98
  • C Regulations Governing Federal Book-Entry Securities p. 99
  • D International Initiatives p. 100
  • 1 The Hague Securities Convention p. 101
  • 2 The UNIDROIT Project p. 102
  • Bibliography p. 105
  • About the Authors p. 109

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