2732

LAWS OF MARYLAND

Ch. 720

INTEREST, IS SIGNED BY THE DEBTOR (WHICH MAY BE A COPY OF THE
SECURITY AGREEMENT) OR WHICH, IN THE CASE OF THE RELEASE OR
ASSIGNMENT OF THE SECURITY INTEREST CREATED PURSUANT TO THIS
PARAGRAPH, IS SIGNED BY THE SECURED PARTY, IS RECEIVED BY:

(I)  A FINANCIAL INTERMEDIARY ON WHOSE BOOKS THE
INTEREST OF THE TRANSFEROR IN THE SECURITY APPEARS;

(II)  A THIRD PERSON, NOT A FINANCIAL
INTERMEDIARY, IN POSSESSION OF THE SECURITY, IF IT IS
CERTIFICATED;

(III)  A THIRD PERSON, NOT A FINANCIAL
INTERMEDIARY, WHO IS THE REGISTERED OWNER OF THE SECURITY, IF IT
IS UNCERTIFICATED AND NOT SUBJECT TO A REGISTERED PLEDGE; OR

(IV)  A THIRD PERSON, NOT A FINANCIAL
INTERMEDIARY, WHO IS THE REGISTERED PLEDGEE OF THE SECURITY, IF
IT IS UNCERTIFICATED AND SUBJECT TO A REGISTERED PLEDGE;

(I) WITH RESPECT TO THE TRANSFER OF A SECURITY
INTEREST WHERE THE TRANSFEROR HAS SIGNED A SECURITY AGREEMENT
CONTAINING A DESCRIPTION OF THE SECURITY, AT THE TIME NEW VALUE
IS GIVEN BY THE SECURED PARTY; OR

(J) WITH RESPECT TO THE TRANSFER OF A SECURITY
INTEREST WHERE THE SECURED PARTY IS A FINANCIAL INTERMEDIARY AND
THE SECURITY HAS ALREADY BEEN TRANSFERRED TO THE FINANCIAL
INTERMEDIARY UNDER PARAGRAPH (A), (B), (C), (D), OR (G), AT THE
TIME THE TRANSFEROR HAS SIGNED A SECURITY AGREEMENT CONTAINING A
DESCRIPTION OF THE SECURITY AND VALUE IS GIVEN BY THE SECURED
PARTY.

(2)  The purchaser is the owner of a security held for him
by [his broker] A FINANCIAL INTERMEDIARY, but [is not the holder]
CANNOT BE A BONA FIDE PURCHASER OF A SECURITY SO HELD except
[as] IN THE CIRCUMSTANCES specified in [subparagraphs] PARAGRAPHS
[(b),] (c), (D)(I), and [(e)] (G) of subsection (1). [Where] IF a
security SO HELD is part of a fungible bulk AS IN THE
CIRCUMSTANCES SPECIFIED IN PARAGRAPH (D)(II) AND (III) OF
SUBSECTION (1) the purchaser is the owner of a proportionate
property interest in the fungible bulk.

(3)  Notice of an adverse claim received by the [broker]
FINANCIAL INTERMEDIARY or by the purchaser after the [broker]
FINANCIAL INTERMEDIARY takes delivery OF A CERTIFICATED SECURITY
as a holder for value OR AFTER THE TRANSFER, PLEDGE OR RELEASE OF
AN UNCERTIFICATED SECURITY HAS BEEN REGISTERED FREE OF THE CLAIM
TO A FINANCIAL INTERMEDIARY WHO HAS GIVEN VALUE is not effective
either as to the [broker] FINANCIAL INTERMEDIARY or as to the
purchaser. However, as between the [broker] FINANCIAL
INTERMEDIARY and the purchaser, the purchaser may demand
[delivery] TRANSFER of an equivalent security as to which no
notice of [an] adverse claim has been received.