New Jersey § 12a:8-510

§ 12a:8-510.

a. In a case not covered by the priority rules in Chapter 9 or the rules stated in

subsection c. of this section, an action based on an adverse claim to a financial

asset or security entitlement, whether framed in conversion, replevin, constructive

trust, equitable lien, or other theory, may not be asserted against a person who purchases

a security entitlement, or an interest therein, from an entitlement holder if the

purchaser gives value, does not have notice of the adverse claim, and obtains control. b. If an adverse claim could not have been asserted against an entitlement holder

under 12A:8-502, the adverse claim cannot be asserted against a person who purchases

a security entitlement, or an interest therein, from the entitlement holder. c. In a case not covered by the priority rules in Chapter 9, a purchaser for value

of a security entitlement, or an interest therein, who obtains control has priority

over a purchaser of a security entitlement, or an interest therein, who does not obtain

control. Except as otherwise provided in subsection d of this section, purchasers who have

control rank according to priority in time of: (1) the purchaser's becoming the person for whom the securities account, in which

the security entitlement is carried, is maintained, if the purchaser obtained control

under 12A:8-106d. (1); (2) the securities intermediary's agreement to comply with the purchaser's entitlement

orders with respect to security entitlements carried or to be carried in the securities

account in which the security entitlement is carried, if the purchaser obtained control

under 12A:8-106d. (2) ; or (3) if the purchaser obtained control through another person under 12A:8-106 d. (3),

the time on which priority would be based under this subsection if the other person

were the secured party . d. A securities intermediary as purchaser has priority over a conflicting purchaser

who has control unless otherwise agreed by the securities intermediary.