HARRY HUGHES, Governor

2737

8-320.

(1)  IN ADDITION TO OTHER METHODS, A TRANSFER, PLEDGE OR
RELEASE OF A SECURITY OR ANY INTEREST THEREIN MAY BE EFFECTED BY
THE MAKING OF APPROPRIATE ENTRIES ON THE BOOKS OF A CLEARING
CORPORATION REDUCING THE ACCOUNT OF THE TRANSFEROR, PLEDGOR OR
PLEDGEE AND INCREASING THE ACCOUNT OF THE TRANSFEREE, PLEDGEE OR
PLEDGOR BY THE AMOUNT OF THE OBLIGATION, OR THE NUMBER OF SHARES
OR RIGHTS TRANSFERRED, PLEDGED OR RELEASED, IF THE SECURITY IS
SHOWN ON THE ACCOUNT OF A TRANSFEROR, PLEDGOR OR PLEDGEE ON THE
BOOKS OF THE CLEARING CORPORATION, IS SUBJECT TO THE CONTROL OF
THE CLEARING CORPORATION, AND:

[(1)] (A) If [a security] CERTIFICATED:

[(a)] (I) Is in the custody of [a] THE clearing
corporation, ANOTHER CLEARING CORPORATION, [or of] a custodian
bank or a nominee of [either subject to the instructions of the
clearing corporation] ANY OF THEM; and

[(b)] (II) Is in bearer form or endorsed in blank by
an appropriate person or registered in the name of the clearing
corporation, [or] A custodian bank or a nominee of [either] ANY
OF THEM; OR [and]

(B) IF UNCERTIFICATED, IS REGISTERED IN THE NAME OF
THE CLEARING CORPORATION, ANOTHER CLEARING CORPORATION, A
CUSTODIAN BANK OR A NOMINEE OF ANY OF THEM.

[(c) Is shown on the account of a transferor or
pledgor on the books of the clearing corporation; then, in
addition to other methods, a transfer or pledge of the security
or any interest therein may be effected by the making of
appropriate entries on the books of the clearing corporation
reducing the account of the transferor or pledgor and increasing
the account of the transferee or pledgee by the amount of the
obligations or the number of shares or rights transferred or
pledged.]

(2)  Under this section entries may be MADE with respect to
like securities or interests therein as a part of a fungible bulk
and may refer merely to a quantity of a particular security
without reference to the name of the registered owner,
certificate or bond number or the like and, in appropriate cases,
may be on a net basis taking into account other transfers, [or]
pledges OR RELEASES of the same security.

(3)  A transfer [or pledge] under this section [has the
effect of a delivery of a security in bearer form or duly
endorsed in blank (§ 8-301) representing the amount of the
obligation or the number of shares or rights transferred or
pledged.] IS EFFECTIVE (§ 8-313) AND THE PURCHASER ACQUIRES THE
RIGHTS OF THE TRANSFEROR (§ 8-301). A PLEDGE OR RELEASE UNDER
THIS SECTION IS THE TRANSFER OF A LIMITED INTEREST. If a pledge
or the creation of a security interest is intended, [the making