810 ILCS 5/8-501

(810 ILCS 5/8-501)

Sec. 8-501.

Securities account; acquisition of
security entitlement from securities intermediary.

(a) "Securities account" means an account to which a financial asset
is or may be credited in accordance with an agreement under which the
person maintaining the account undertakes to treat the person for whom the
account is maintained as entitled to exercise the rights that comprise the
financial asset.

(b) Except as otherwise provided in subsections (d) and (e), a
person acquires a security entitlement if a securities intermediary:

(1) indicates by book entry that a financial asset

has been credited to the person's securities account;

(2) receives a financial asset from the person or

acquires a financial asset for the person and, in either case, accepts it for credit to the person's securities account; or

(3) becomes obligated under other law, regulation, or

rule to credit a financial asset to the person's securities account.

(c) If a condition of subsection (b) has been met, a person has a
security entitlement even though the securities intermediary does not itself
hold the financial asset.

(d) If a securities intermediary holds a financial asset for another
person, and the financial asset is registered in the name of, payable to the
order of, or specially indorsed to the other person, and has not been
indorsed to the securities intermediary or in blank, the other person is
treated as holding the financial asset directly rather than as having a
security entitlement with respect to the financial asset.

(e) Issuance of a security is not establishment of a security
entitlement.

(Source: P.A. 89-364, eff. 1-1-96.)