Section 8--501. Securities Account; Acquisition of Security Entitlement from Securities Intermediary

(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.
    (b) Except as otherwise provided in subsections (d) and (e), a  person
  acquires a security entitlement if a securities intermediary:
         (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
         (3) becomes obligated under other law,  regulation,  or  rule  to
             credit a financial asset to the person's securities account.
    (c) If  a  condition  of  subsection  (b) has been met, a person has a
  security entitlement even though the securities  intermediary  does  not
  itself hold the financial asset.
    (d) If  a  securities intermediary holds a financial asset for another
  person, and the financial asset is registered in the name of, payable to
  the order of, or specially indorsed to the other  person,  and  has  not
  been  indorsed  to  the  securities  intermediary or in blank, the other
  person is treated as holding the financial asset directly rather than as
  having a security entitlement with respect to the financial asset.
    (e) Issuance  of  a  security  is  not  establishment  of  a  security
  entitlement.