What is Article 8 of UCC?

What is Article 8 of UCC?

RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS. ACQUISITION OF SECURITY OR FINANCIAL ASSET OR INTEREST THEREIN.

What is Article 9 of the UCC?

Article 9 is a section under the UCC governing secured transactions including the creation and enforcement of debts. Article 9 spells out the procedure for settling debts, including various types of collateralized loans and bonds.

What is a securities entitlement order?

Entitlement Order means a notification communicated to a securities intermediary directing transfer or redemption of a financial asset to which the entitlement holder has a security entitlement. Entitlement Order means a notification directing the Securities Intermediary to transfer or redeem a financial asset.

Does UCC apply to securities?

The Uniform Commercial Code (UCC) contains rules applying to many types of commercial contracts, including contracts related to the sale of goods, leasing of goods, use of negotiable instruments, banking transactions, letters of credit, documents of title for goods, investment securities, and secured transactions.

What is securities intermediary?

(14) “Securities intermediary” means: (i) a clearing corporation; or. (ii) a person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity.

What is Article 2 of the UCC?

Uniform Commercial Code Article 2 governs the sale of goods. It was part of the original Uniform Commercial Code approved in 1951. Article 2 represented a revision and modernization of the Uniform Sales Act, which was originally approved by the National Conference of Commissioners on Uniform State Laws in 1906.

What is a UCC 1 308?

What is a UCC 1 308? UCC 1-308 Performance or acceptance under reservation of rights. (1) A party who, with explicit reservation of rights, performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved.

Are bank accounts securities?

Bank accounts are depository accounts. In contrast to a bank account, which can only hold money, a brokerage account holds both money and securities. Brokerage accounts are also sometimes referred to as investment accounts because their ability to hold securities allows the account holders to invest in capital markets.

What is a basic securities account?

A securities account sometimes known as a brokerage account is an account that holds financial assets such as securities on behalf of an investor with a bank, broker or custodian. Investors and traders typically have a securities account with the broker or bank they use to buy and sell securities.

Who does the UCC protect?

The Uniform Commercial Code (UCC), which has been adopted in most states, is a comprehensive body of laws governing uniformity and fair dealing with transactions. It provides remedies and rights for both the buyer and seller.

What is a certificated security UCC?

A certificated security is a declared ownership interest (like a corporation’s stock certificate) represented by a properly prepared and held certificate. An uncertificated security is an ownership that is not represented by a properly prepared certificate. See, UCC 8-102(4), (18).

What do you mean by securities account?

(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.

What is an secsecurities account?

Securities Account means a “securities account” (as defined in Article 9 of the UCC), an investment account, or other account in which investment property or securities are held or invested for credit to or for the benefit of any Borrower. Sample 1 Sample 2 Sample 3

What is security account holder?

(ii) a person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity.

What is a credit(1) in accounting?

(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