Certain Security Entitlements Clause Samples
The 'Certain Security Entitlements' clause defines the rights and interests that a party holds in specific securities or financial assets held through an intermediary. It typically outlines how these entitlements are established, transferred, or maintained, and may specify the types of securities covered, such as stocks or bonds held in a brokerage account. By clarifying the nature and scope of a party's interests in these assets, the clause ensures legal certainty and helps prevent disputes over ownership or control of the securities.
Certain Security Entitlements. The Servicer will take all steps necessary to ensure that no “security entitlement” (within the meaning of Section 8-102(a)(17) of the UCC of all applicable jurisdictions) (i) that is subject to federal regulations governing security entitlements maintained on the books of a federal reserve bank (including, without limitation, Treasury securities subject to 31 C.F.R. Part 357), or (ii) where the underlying security (within the meaning of Section 8-102(a)(15) of the UCC of all applicable jurisdictions) or other financial asset (within the meaning of Section 8-102(a)(9) of the UCC of all applicable jurisdictions) has not been either endorsed to the securities intermediary (within the meaning of Section 8-501(a) of the UCC of all applicable jurisdictions) under the Control Agreement, or in blank or credited to a securities account (within the meaning of Section 8-102(a)(9) of the UCC of all applicable jurisdictions) in the name of Securities Intermediary will be held in the Collection Account.