KANSAS OFFICE of
  REVISOR of STATUTES

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84-8-112. Creditor's legal process. (a) The interest of a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate by the officer making the attachment or levy, except as otherwise provided in subsection (d). However, a certificated security for which the certificate has been surrendered to the issuer may be reached by a creditor by legal process upon the issuer.

(b) The interest of a debtor in an uncertificated security may be reached by a creditor only by legal process upon the issuer at its chief executive office in the United States, except as otherwise provided in subsection (d).

(c) The interest of a debtor in a security entitlement may be reached by a creditor only by legal process upon the securities intermediary with whom the debtor's securities account is maintained, except as otherwise provided in subsection (d).

(d) The interest of a debtor in a certificated security for which the certificate is in the possession of a secured party or in an uncertificated security registered in the name of a secured party or a security entitlement maintained in the name of a secured party, may be reached by a creditor by legal process upon the secured party.

(e) A creditor whose debtor is the owner of a certificated security, uncertificated security or security entitlement is entitled to aid from a court of competent jurisdiction, by injunction or otherwise, in reaching the certificated security, uncertificated security or security entitlement, or in satisfying the claim by means allowed at law or in equity in regard to property that cannot readily be reached by other legal process.

History: L. 1996, ch. 202, ยง 39; July 1.

KANSAS COMMENT, 1996

The section is derived from the former 84-8-317. The first three subsections, (a), (b) and (c), are straightforward. Subsection (d), the explicit exception to the first three sections dealing with the debtors' equity in collateral held by a secured party, must be read in conjunction with Article 9. The phrase "[t]he interest of a debtor" should be interpreted to mean the interest the debtor has under other laws, primarily Article 9. See 84-9-201. Finally, subsection (e), despite the express subordination given only to subsection (d) in the first three subsections, appears to be another exception to subsections (a), (b) and (c). Examples for the application of subsection (e) would include such things as the debtor's interest in express or implied trusts, inheritances and partially performed contracts.


 



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