Priority among security interests and entitlement holders.
13 Pa.C.S. § 8511
in effect(a) General rule.--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.
(b) When creditor of securities intermediary has control over financial asset.--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.
(c) Clearing corporations.--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. Cross References. Section 8511 is referred to in section 8503 of this title. DIVISION 9 SECURED TRANSACTIONS Chapter 91. General Provisions 92. Effectiveness of Security Agreement, Attachment of Security Interest and Rights of Parties to Security Agreement 93. Perfection and Priority 94. Rights of Third Parties 95. Filing 96. Default 97. Transition Provisions 98. Transition Provisions for 2013 Amendments Enactment. Division 9 was added June 8, 2001, P.L.123, No.18, effective July 1, 2001. Prior Provisions. Former Division 9, which related to secured transactions, sales of accounts, contract rights and chattel paper, was added November 1, 1979, P.L.255, No.86, and repealed June 8, 2001, P.L.123, No.18, effective July 1, 2001.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=13Fetched: 10/16/2026