{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/8.8A-511.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/8.8A-511.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/8.8A-511.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/8.8A-511.html"}],"law_id":378352,"edition_id":2,"section_id":378352,"structure_id":53762,"section_number":"8.8A-511","catch_line":"Priority among security interests and entitlement holders","history":"1996, c. 216.","full_text":"a\n\nExcept as otherwise provided in subsections (b) and (c), 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.\n\nb\n\nA 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 holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.\n\nc\n\nIf a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.\n\n","order_by":null,"text":{"0":{"id":1411745,"text":"Except as otherwise provided in subsections (b) and (c), 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.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":1411746,"text":"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 holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":1411747,"text":"If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b"}},"ancestry":[{"id":53762,"edition_id":2,"name":"Security Entitlements","identifier":"5","label":"part","depth":2,"order_by":5,"parent_id":53757,"metadata":{"child_laws":11,"child_structures":0},"date_created":"2026-08-02 03:21:53","date_modified":"2026-08-02 12:28:36","permalink":{"id":1510783,"object_type":"structure","relational_id":53762,"identifier":"5","token":"8.8A\/5","url":"\/8.8A\/5\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53757,"edition_id":2,"name":"Commercial Code \u2014 Investment Securities","identifier":"8.8A","label":"title","depth":1,"order_by":28,"parent_id":null,"metadata":{"child_laws":52,"child_structures":6},"date_created":"2026-08-02 03:21:46","date_modified":"2026-08-02 12:28:35","permalink":{"id":1510613,"object_type":"structure","relational_id":53757,"identifier":"8.8A","token":"8.8A","url":"\/8.8A\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":378342,"structure_id":53762,"section_number":"8.8A-501","catch_line":"Securities account; acquisition of security entitlement from securities intermediary","url":"\/8.8A-501\/","token":"8.8A\/5\/8.8A-501","metadata":false},{"id":378343,"structure_id":53762,"section_number":"8.8A-502","catch_line":"Assertion of adverse claim against entitlement holder","url":"\/8.8A-502\/","token":"8.8A\/5\/8.8A-502","metadata":false},{"id":378344,"structure_id":53762,"section_number":"8.8A-503","catch_line":"Property interest of entitlement holder in financial asset held by securities intermediary","url":"\/8.8A-503\/","token":"8.8A\/5\/8.8A-503","metadata":false},{"id":378345,"structure_id":53762,"section_number":"8.8A-504","catch_line":"Duty of securities intermediary to maintain financial asset","url":"\/8.8A-504\/","token":"8.8A\/5\/8.8A-504","metadata":false},{"id":378346,"structure_id":53762,"section_number":"8.8A-505","catch_line":"Duty of securities intermediary with respect to payments and distributions","url":"\/8.8A-505\/","token":"8.8A\/5\/8.8A-505","metadata":false},{"id":378347,"structure_id":53762,"section_number":"8.8A-506","catch_line":"Duty of securities intermediary to exercise rights as directed by entitlement holder","url":"\/8.8A-506\/","token":"8.8A\/5\/8.8A-506","metadata":{"court_decisions":""}},{"id":378348,"structure_id":53762,"section_number":"8.8A-507","catch_line":"Duty of securities intermediary to comply with entitlement order","url":"\/8.8A-507\/","token":"8.8A\/5\/8.8A-507","metadata":{"court_decisions":""}},{"id":378349,"structure_id":53762,"section_number":"8.8A-508","catch_line":"Duty of securities intermediary to change entitlement holder's position to other form of security holding","url":"\/8.8A-508\/","token":"8.8A\/5\/8.8A-508","metadata":false},{"id":378350,"structure_id":53762,"section_number":"8.8A-509","catch_line":"Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder","url":"\/8.8A-509\/","token":"8.8A\/5\/8.8A-509","metadata":false},{"id":378351,"structure_id":53762,"section_number":"8.8A-510","catch_line":"Rights of purchaser of security entitlement from entitlement holder","url":"\/8.8A-510\/","token":"8.8A\/5\/8.8A-510","metadata":false},{"id":378352,"structure_id":53762,"section_number":"8.8A-511","catch_line":"Priority among security interests and entitlement holders","url":"\/8.8A-511\/","token":"8.8A\/5\/8.8A-511","metadata":false}],"previous_section":{"id":378351,"structure_id":53762,"section_number":"8.8A-510","catch_line":"Rights of purchaser of security entitlement from entitlement holder","url":"\/8.8A-510\/","token":"8.8A\/5\/8.8A-510","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.8A-511\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapter 216<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":378344,"section_number":"8.8A-503","catch_line":"Property interest of entitlement holder in financial asset held by securities intermediary","order_by":null,"url":"\/8.8A-503\/"}],"refers_to":false,"permalink":{"id":1510825,"object_type":"law","relational_id":378352,"identifier":"8.8A-511","token":"8.8A\/5\/8.8A-511","url":"\/8.8A-511\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/8.8A-511\/","token":"8.8A\/5\/8.8A-511","dublin_core":{"Title":"Priority among security interests and entitlement holders","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.8A-511","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Except as otherwise provided in subsections (b) and (c), 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<\/span> of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor<\/span>, have priority over the claim of the creditor<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> A claim of a creditor<\/span> 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 holders who have security entitlements with respect to that financial asset if the creditor<\/span> has control over the financial asset. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If a clearing corporation does not have sufficient financial assets<\/span> to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor<\/span> of the clearing corporation who has a security interest in that financial asset, the claim of the creditor<\/span> has priority over the claims of entitlement holders. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPRIORITY AMONG SECURITY INTERESTS AND ENTITLEMENT HOLDERS (\u00a7 8.8A-511)\n\na. Except as otherwise provided in subsections (b) and (c), if a securities\nintermediary does not have sufficient interests in a particular financial asset\nto satisfy both its obligations to entitlement holders who have security\nentitlements to that financial asset and its obligation to a creditor of the\nsecurities intermediary who has a security interest in that financial asset, the\nclaims of entitlement holders, other than the creditor, have priority over the\nclaim of the creditor.\n\nb. A claim of a creditor of a securities intermediary who has a security\ninterest in a financial asset held by a securities intermediary has priority\nover claims of the securities intermediary’s entitlement holders who have\nsecurity entitlements with respect to that financial asset if the creditor has\ncontrol over the financial asset.\n\nc. If a clearing corporation does not have sufficient financial assets to\nsatisfy both its obligations to entitlement holders who have security\nentitlements with respect to a financial asset and its obligation to a creditor\nof the clearing corporation who has a security interest in that financial asset,\nthe claim of the creditor has priority over the claims of entitlement holders.\n\nHISTORY: 1996, c. 216.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}