Section 45.29.328. Priority of security interests in investment property.

The following rules govern priority among conflicting security interests in the same investment property:
        (1) a security interest held by a secured party having control of investment property under AS 45.29.106 has priority over a security interest held by a secured party that does not have control of the investment property;
        (2) except as otherwise provided in (3) and (4) of this section, conflicting security interests held by secured parties each of which has control under AS 45.29.106 rank according to priority in time, if the collateral is
             (A) a security, of obtaining control;
             (B) a security entitlement carried in a securities account and if the secured party obtained control
                  (i) under AS 45.08.106(d)(1), of the secured party's becoming the person for which the securities account is maintained;
                  (ii) under AS 45.08.106(d)(2), of the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or
                  (iii) through another person under AS 45.08.106(d)(3), of the time on which priority would be based under this paragraph if the other person were the secured party; or
             (C) a commodity contract carried with a commodity intermediary, of the satisfaction of the requirement for control specified in AS 45.29.106(b)(2) with respect to commodity contracts carried or to be carried with the commodity intermediary;
        (3) a security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party;
        (4) a security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party;
        (5) a security interest in a certificated security in registered form that is perfected by taking delivery under AS 45.29.313(a) and not by control under AS 45.29.314 has priority over a conflicting security interest perfected by a method other than control;
        (6) conflicting security interests created by a broker, securities intermediary, or commodity intermediary that are perfected without control under AS 45.29.106 rank equally;
        (7) in all other cases, priority among conflicting security interests in investment property is governed by AS 45.29.322 and 45.29.323.

Notes

History

(Sec. 1 ch 113 SLA 2000)