Securities intermediary as purchaser for value

84-8-116. Securities intermediary as purchaser for value. A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset in favor of an entitlement holder. History: L. 1996, ch. 202, § 43; July 1. KANSAS COMMENT, 1996 This section is new, defining a securities intermediary as a purchaser for value, making it possible to claim purchaser, and in some cases, protected purchaser status if the other requirements have been satisfied. This status is somewhat analogous to bona fide purchaser for value and holder in due course status. See, e.g., 84-8-108 and 84-8-109 (warranties), 84-8-202 (invalidly issued securities), 84-8-302 and 84-8-303 (purchasers and protected purchasers) and 84-8-502 (security entitlement acquired for value and without notice).