T-11.002 - Act respecting the transfer of securities and the establishment of security entitlements

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130. If a securities intermediary does not have sufficient rights in a financial asset to satisfy both the securities intermediary’s obligations to entitlement holders who have security entitlements to that financial asset and the securities intermediary’s obligation to a creditor of the securities intermediary who has a security on that financial asset, the claims of entitlement holders have priority over the claim of the creditor.
However, the claim of a creditor of a securities intermediary that has a security on a financial asset held by a securities intermediary has priority over claims of the securities intermediary’s entitlement holders who have security entitlements with respect to that financial asset if
(1)  the securities intermediary is a clearing agency; or
(2)  the creditor has control of the financial asset.
2008, c. 20, s. 130.