Ch. 92                                     1996 LAWS OF MARYLAND

(2) RIGHTS OF THE SECURITIES INTERMEDIARY UNDER OTHER LAW,
REGULATION, RULE, OR AGREEMENT TO WITHHOLD PERFORMANCE OF ITS DUTIES
AS A RESULT OF UNFULFILLED OBLIGATIONS OF THE ENTITLEMENT HOLDER TO
THE SECURITIES INTERMEDIARY.

(D) SECTIONS 8-504 THROUGH 8-508 OF THIS SUBTITLE DO NOT REQUIRE A
SECURITIES INTERMEDIARY TO TAKE ANY ACTION THAT IS PROHIBITED BY OTHER
STATUTE, REGULATION, OR RULE

8-510.

(A)    AN ACTION BASED ON AN ADVERSE CLAIM TO A FINANCIAL ASSET OR
SECURITY ENTITLEMENT, WHETHER FRAMED IN CONVERSION, REPLEVIN,
CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR OTHER THEORY, MAY NOT BE
ASSERTED AGAINST A PERSON WHO PURCHASES A SECURITY ENTITLEMENT, OR AN
INTEREST IN A SECURITY ENTITLEMENT, FROM AN ENTITLEMENT HOLDER IF THE
PURCHASER GIVES VALUE, DOES NOT HAVE NOTICE OF THE ADVERSE CLAIM, AND
OBTAINS CONTROL.

(B)     IF AN ADVERSE CLAIM COULD NOT HAVE BEEN ASSERTED AGAINST AN
ENTITLEMENT HOLDER UNDER § 8-502 OF THIS SUBTITLE, THE ADVERSE CLAIM
CANNOT BE ASSERTED AGAINST A PERSON WHO PURCHASES A SECURITY
ENTITLEMENT, OR AN INTEREST IN A SECURITY ENTITLEMENT, FROM THE
ENTITLEMENT HOLDER.

(C) (1) IN A CASE NOT COVERED BY THE PRIORITY RULES IN TITLE 9 OF
THIS ARTICLE, A PURCHASER FOR VALUE OF A SECURITY ENTITLEMENT, OR AN
INTEREST IN A SECURITY ENTITLEMENT, WHO OBTAINS CONTROL HAS PRIORITY
OVER A PURCHASER OF A SECURITY ENTITLEMENT, OR AN INTEREST IN A
SECURITY ENTITLEMENT, WHO DOES NOT OBTAIN CONTROL.

(2) PURCHASERS WHO HAVE CONTROL RANK EQUALLY, EXCEPT THAT
A SECURITIES INTERMEDIARY AS PURCHASER HAS PRIORITY OVER A CONFLICTING
PURCHASER WHO HAS CONTROL UNLESS OTHERWISE AGREED BY THE SECURITIES
INTERMEDIARY.

8-511.

(A)    EXCEPT AS OTHERWISE PROVIDED IN SUBSECTIONS (B) AND (C) OF THIS
SECTION, IF A SECURITIES INTERMEDIARY DOES NOT HAVE SUFFICIENT INTERESTS
IN A PARTICULAR FINANCIAL ASSET TO SATISFY BOTH ITS OBLIGATIONS TO
ENTITLEMENT HOLDERS WHO HAVE SECURITY ENTITLEMENTS TO THAT FINANCIAL
ASSET AND ITS OBLIGATION TO A CREDITOR OF THE SECURITIES INTERMEDIARY
WHO HAS A SECURITY INTEREST IN THAT FINANCIAL ASSET, THE CLAIMS OF
ENTITLEMENT HOLDERS, OTHER THAN THE CREDITOR, HAVE PRIORITY OVER THE
CLAIM OF THE CREDITOR.

(B)     A CLAIM OF A CREDITOR OF A SECURITIES INTERMEDIARY WHO HAS A
SECURITY INTEREST IN A FINANCIAL ASSET HELD BY A SECURITIES INTERMEDIARY
HAS PRIORITY OVER CLAIMS OF THE SECURITIES INTERMEDIARY'S ENTITLEMENT

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