§ 336.9-106 — Control of Investment Property
Plain-Language Summary
Control of investment property can be obtained through the securities intermediary's agreement to follow the secured party's instructions without the debtor's further consent.
336.9-106 2000 c 399 art 1 s 140
336.9-106 CONTROL OF INVESTMENT PROPERTY.
(a) **Control under section 336.8-106. ** A person has control of a certificated security, uncertificated security, or security entitlement as provided in section 336.8-106.
(b) Control of commodity contract. A secured party has control of a commodity contract if:
(1) the secured party is the commodity intermediary with which the commodity contract is carried; or
(2) the commodity customer, secured party, and commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured party without further consent by the commodity customer.
(c) Effect of control of securities account or commodity account. A secured party having control of all security entitlements or commodity contracts carried in a securities account or commodity account has control over the securities account or commodity account.
History:
History: History:
2000 c 399 art 1 s 6