(1). A purchaser has control of a certificated security in bearer form if the certificated security is delivered to the purchaser.

[PL 1997, c. 429, Pt. B, §2 (NEW).]

Terms Used In Maine Revised Statutes Title 11 Sec. 8-1106

  • Certificated security: means a security that is represented by a certificate. See Maine Revised Statutes Title 11 Sec. 8-1102
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • Entitlement holder: means a person identified in the records of a securities intermediary as the person having a security entitlement against the securities intermediary. See Maine Revised Statutes Title 11 Sec. 8-1102
  • Indorsement: means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate document for the purpose of assigning, transferring or redeeming the security or granting a power to assign, transfer or redeem it. See Maine Revised Statutes Title 11 Sec. 8-1102
  • Securities intermediary: means :
    (i) A clearing corporation; or
    (ii) A person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity. See Maine Revised Statutes Title 11 Sec. 8-1102
  • Security: except as otherwise provided in section 8?1103, means an obligation of an issuer or a share, participation or other interest in an issuer or in property or an enterprise of an issuer:
    (i) That is represented by a security certificate in bearer or registered form or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;
    (ii) That is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests or obligations; and
    (iii) That:
    (A) Is, or is of a type, dealt in or traded on securities exchanges or securities markets; or
    (B) Is a medium for investment and by its terms expressly provides that it is a security governed by this Article. See Maine Revised Statutes Title 11 Sec. 8-1102
  • Security entitlement: means the rights and property interest of an entitlement holder with respect to a financial asset specified in Part 5. See Maine Revised Statutes Title 11 Sec. 8-1102
  • Uncertificated security: means a security that is not represented by a certificate. See Maine Revised Statutes Title 11 Sec. 8-1102
(2). A purchaser has control of a certificated security in registered form if the certificated security is delivered to the purchaser, and:
(a). The certificate is indorsed to the purchaser or in blank by an effective indorsement; or [PL 1997, c. 429, Pt. B, §2 (NEW).]
(b). The certificate is registered in the name of the purchaser upon original issue or registration of transfer by the issuer. [PL 1997, c. 429, Pt. B, §2 (NEW).]

[PL 1997, c. 429, Pt. B, §2 (NEW).]

(3). A purchaser has control of an uncertificated security if:
(a). The uncertificated security is delivered to the purchaser; or [PL 1997, c. 429, Pt. B, §2 (NEW).]
(b). The issuer has agreed that it will comply with instructions originated by the purchaser without further consent by the registered owner. [PL 1997, c. 429, Pt. B, §2 (NEW).]

[PL 1997, c. 429, Pt. B, §2 (NEW).]

(4). A purchaser has control of a security entitlement if:
(a). The purchaser becomes the entitlement holder; [PL 1999, c. 699, Pt. B, §21 (AMD); PL 1999, c. 699, Pt. B, §28 (AFF).]
(b). The securities intermediary has agreed that it will comply with entitlement orders originated by the purchaser without further consent by the entitlement holder; or [PL 1999, c. 699, Pt. B, §21 (AMD); PL 1999, c. 699, Pt. B, §28 (AFF).]
(c). Another person has control of the security entitlement on behalf of the purchaser or, having previously acquired control of the security entitlement, acknowledges that it has control on behalf of the purchaser. [PL 1999, c. 699, Pt. B, §21 (NEW); PL 1999, c. 699, Pt. B, §28 (AFF).]

[PL 1999, c. 699, Pt. B, §21 (AMD); PL 1999, c. 699, Pt. B, §28 (AFF).]

(5). If an interest in a security entitlement is granted by the entitlement holder to the entitlement holder’s own securities intermediary, the securities intermediary has control.

[PL 1997, c. 429, Pt. B, §2 (NEW).]

(6). A purchaser who has satisfied the requirements of subsection (3) or subsection (4) has control, even if the registered owner in the case of subsection (3) or the entitlement holder in the case of subsection (4) retains the right to make substitutions for the uncertificated security or security entitlement, to originate instructions or entitlement orders to the issuer or securities intermediary or otherwise to deal with the uncertificated security or security entitlement.

[PL 1999, c. 699, Pt. B, §21 (AMD); PL 1999, c. 699, Pt. B, §28 (AFF).]

(7). An issuer or a securities intermediary may not enter into an agreement of the kind described in subsection (3), paragraph (b) or subsection (4), paragraph (b) without the consent of the registered owner or entitlement holder, but an issuer or a securities intermediary is not required to enter into such an agreement even though the registered owner or entitlement holder so directs. An issuer or securities intermediary that has entered into such an agreement is not required to confirm the existence of the agreement to another party unless requested to do so by the registered owner or entitlement holder.

[PL 1997, c. 429, Pt. B, §2 (NEW).]

SECTION HISTORY

PL 1997, c. 429, §B2 (NEW). PL 1999, c. 699, §B21 (AMD). PL 1999, c. 699, §B28 (AFF).