Property interest of entitlement holders in financial asset
97. (1) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary, (a) are held by the securities intermediary for the entitlement holders; (b) are not the property of the securities intermediary; and (c) are not subject to claims of creditors of the securities intermediary, except as otherwise provided in section 105. 2006, c. 8, s. 97 (1). Proportionate interest (2) An entitlement holder’s property interest with respect to a particular financial asset under subsection (1) is a proportionate property interest in all interests in that financial asset held by the securities intermediary, without regard to, (a) the time that the entitlement holder acquired the security entitlement; or (b) the time that the securities intermediary acquired the interest in that financial asset. 2006, c. 8, s. 97 (2). Enforcement of property interest against securities intermediary (3) An entitlement holder’s property interest with respect to a particular financial asset under subsection (1) may be enforced against the securities intermediary only by the exercise of the entitlement holder’s rights under sections 99 to 102. 2006, c. 8, s. 97 (3). Enforcement of property interest against purchaser (4) An entitlement holder’s property interest with respect to a particular financial asset under subsection (1) may be enforced against a purchaser of the financial asset, or interest in it, only if, (a) bankruptcy or insolvency proceedings have been initiated by or against the securities intermediary; (b) the securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset; (c) the securities intermediary violated its obligations under section 98 by transferring the financial asset, or interest in it, to the purchaser; and (d) the purchaser is not protected under subsection (7). 2006, c. 8, s. 97 (4). Recovery by trustee or liquidator (5) For the purposes of subsection (4), a trustee or other liquidator acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset may recover the financial asset, or interest in it, from the purchaser. 2006, c. 8, s. 97 (5). Recovery by entitlement holder (6) If the trustee or other liquidator elects not to pursue the right provided under subsection (5), an entitlement holder whose security entitlement remains unsatisfied has the right to recover the entitlement holder’s interest in the financial asset from the purchaser. 2006, c. 8, s. 97 (6). Protection of purchaser for value (7) A legal proceeding based on the entitlement holder’s property interest with respect to a particular financial asset under subsection (1), however framed, may not be brought against any purchaser of a financial asset, or interest in it, who, (a) gives value; (b) obtains control or possession; and (c) does not act in collusion with the securities intermediary in violating the securities intermediary’s obligations under section 98. 2006, c. 8, s. 97 (7).