Okla. Stat. tit. 12A § 8-502

Current through Laws 2024, c. 453.

Section 8-502 - Assertion of Adverse Claim Against Entitlement Holder

An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under Section 8-501 of this title for value and without notice of the adverse claim.

Okla. Stat. tit. 12A, § 8-502

Added by Laws 1995, SB 522, c. 242, § 42, eff. 2/1/1996; Amended by Laws 2000, SB 1519, c. 371, §165, eff. 7/1/2001.

Oklahoma Code Comment

This Section plays a role in the indirect holding system analogous to the rule of the direct holding system that "protected purchasers" of securities take free from adverse claims. See UCC § 8-303. However, this does not mean a person who acquires a security entitlement for value and without notice of any adverse claims to a financial asset acquires any protected rights in the underlying financial asset. The nature of the indirect holding system is that an entitlement holder has an interest in common with others who hold positions in the same security through the same intermediary. This Section does not protect entitlement holders against the risk that their securities intermediary will not have sufficient financial assets to satisfy the claims of all its entitlement holders. It does mean that adverse claimants to the underlying financial asset may not assert claims based on tracing or the like against the protected holder of a security entitlement.

Prior Statutory Provisions:

None.