T-11.002 - Act respecting the transfer of securities and the establishment of security entitlements

Section 129 Disposition versions

2009-01-01

129. A purchaser for value of rights in a security entitlement who obtains control of the security entitlement has priority over such a purchaser who does not obtain control. When two or more such purchasers have control of a security entitlement, the purchaser who first obtained control has priority over the other; however, the purchaser who obtains control by becoming the person for whom the securities account in which the security entitlement is carried is maintained has priority.

A securities intermediary as purchaser always has priority over a conflicting purchaser who has control of the security entitlement.

The rules set out in this section apply subject to the rules set out in the Civil Code with regard to hypothecs.

2008, c. 20, s. 129.