Vermont § 503 - § 8—503.

§ 503. § 8—503.

• Property interest of entitlement holder in financial asset held by securities intermediary (a) 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 are held by the securities intermediary for the
  entitlement holders, are not property of the securities intermediary, and are not
  subject to claims of creditors of the securities intermediary, except as otherwise
  provided in section 8—511 of this title. (b) An entitlement holder’s property interest with respect to a particular financial asset
  under subsection (a) of this section is a pro rata property interest in all interests
  in that financial asset held by the securities intermediary, without regard to the
  time the entitlement holder acquired the security entitlement or the time the securities
  intermediary acquired the interest in that financial asset. (c) An entitlement holder’s property interest with respect to a particular financial asset
  under subsection (a) of this section may be enforced against the securities intermediary
  only by exercise of the entitlement holder’s rights under sections 8—505 through 8—508 of this title. (d) An entitlement holder’s property interest with respect to a particular financial asset
  under subsection (a) of this section may be enforced against a purchaser of the financial
  asset or interest therein only if: (1) insolvency proceedings have been initiated by or against the securities intermediary; (2) 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; (3) the securities intermediary violated its obligations under section 8—504 of this title by transferring the financial asset or interest therein to the purchaser; and (4) the purchaser is not protected under subsection (e) of this section. The 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 therein, from the purchaser. If the trustee or other
  liquidator elects not to pursue that right, an entitlement holder whose security entitlement
  remains unsatisfied has the right to recover its interest in the financial asset from
  the purchaser. (e) An action based on the entitlement holder’s property interest with respect to a particular
  financial asset under subsection (a) of this section, whether framed in conversion,
  replevin, constructive trust, equitable lien, or other theory, may not be asserted
  against any purchaser of a financial asset or interest therein who gives value, obtains
  control, and does not act in collusion with the securities intermediary in violating
  the securities intermediary’s obligations under section 8—504 of this title. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997.)