PARRIS N. GLENDENING, Governor                               Ch. 92

THE SECURITY INTEREST HAS PRIORITY OVER A CONFLICTING SECURITY INTEREST
PERFECTED BY MEANS OTHER THAN CONTROL, EVEN IF A NECESSARY
INDORSEMENT IS LACKING.

9-116.

(1)     IF A PERSON BUYS A FINANCIAL ASSET THROUGH A SECURITIES
INTERMEDIARY IN A TRANSACTION IN WHICH THE BUYER IS OBLIGATED TO PAY
THE PURCHASE PRICE TO THE SECURITIES INTERMEDIARY AT THE TIME OF THE
PURCHASE, AND THE SECURITIES INTERMEDIARY CREDITS THE FINANCIAL ASSET
TO THE BUYER'S SECURITIES ACCOUNT BEFORE THE BUYER PAYS THE SECURITIES
INTERMEDIARY, THE SECURITIES INTERMEDIARY HAS A SECURITY INTEREST IN
THE BUYER'S SECURITY ENTITLEMENT SECURING THE BUYER'S OBLIGATION TO
PAY. A SECURITY AGREEMENT IS NOT REQUIRED FOR ATTACHMENT OR
ENFORCEABILITY OF THE SECURITY INTEREST, AND THE SECURITY INTEREST IS
AUTOMATICALLY PERFECTED.

(2)     IF A CERTIFICATED SECURITY, OR OTHER FINANCIAL ASSET
REPRESENTED BY A WRITING WHICH IN THE ORDINARY COURSE OF BUSINESS IS
TRANSFERRED BY DELIVERY WITH ANY NECESSARY INDORSEMENT OR
ASSIGNMENT IS DELIVERED PURSUANT TO AN AGREEMENT BETWEEN PERSONS IN
THE BUSINESS OF DEALING WITH SUCH SECURITIES OR FINANCIAL ASSETS AND THE
AGREEMENT CALLS FOR DELIVERY VERSUS PAYMENT, THE PERSON DELIVERING
THE CERTIFICATE OR OTHER FINANCIAL ASSET HAS A SECURITY INTEREST IN THE
CERTIFICATED SECURITY OR OTHER FINANCIAL ASSET SECURING THE SELLER'S
RIGHT TO RECEIVE PAYMENT. A SECURITY AGREEMENT IS NOT REQUIRED FOR
ATTACHMENT OR ENFORCEABILITY OF THE SECURITY INTEREST, AND THE
SECURITY INTEREST IS AUTOMATICALLY PERFECTED.

9-203.

(1) Subject to the provisions of § 4-208 on the security interest of a collecting
bank, [§ 8-321 on security interests in securities] §§ 9-115 AND 9-116 ON SECURITY
INTERESTS IN INVESTMENT PROPERTY, and § 9-113 on a security interest arising under
the title on sales, a security interest is not enforceable against the debtor or third parties
with respect to the collateral and does not attach unless:

(a)     The collateral is in the possession of the secured party pursuant to
agreement, THE COLLATERAL IS INVESTMENT PROPERTY AND THE SECURED PARTY
HAS CONTROL PURSUANT TO AGREEMENT, or the debtor has signed a security
agreement which contains a description of the collateral and in addition, when the
security interest covers crops growing or to be grown or timber to be cut, a description of
the land concerned;

(b)     Value has been given; and

(c)     The debtor has rights in the collateral.
9-301.

(1) Except as otherwise provided in subsection (2) an unperfected security
interest is subordinate to the rights of

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