Nevada § 104.8501 - Securities account; acquisition of security entitlement from securities intermediary

§ 104.8501. Securities account; acquisition of security entitlement from securities intermediary

1. “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. 2. Except as otherwise provided in subsections 4 and 5, a person acquires a security

entitlement if a securities intermediary: (a) Indicates by book entry that a financial asset has been credited to his or her

securities account; (b) Receives a financial asset from the person or acquires a financial asset for him

or her and, in either case, accepts it for credit to his or her securities account;

or (c) Becomes obligated under other law, regulation or rule to credit a financial asset

to his or her securities account. 3. If a condition of subsection 2 has been met, a person has a security entitlement

even though the securities intermediary does not itself hold the financial asset. 4. 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

endorsed to the other person and has not been endorsed 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. 5. Issuance of a security is not establishment of a security entitlement.