KANSAS OFFICE of
  REVISOR of STATUTES

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84-8-502. Assertion of adverse claim against entitlement holder. An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien or other theory may not be asserted against a person who acquires a security entitlement under K.S.A. 84-8-501 for value and without notice of the adverse claim.

History: L. 1996, ch. 202, ยง 69; July 1.

KANSAS COMMENT, 1996

This section is new. It is identical to the 1995 Official Text. 84-8-502 should be read with 84-8-510, both of which deal with variations of the "bona fide purchaser for value" rule, but differ in the person they are protecting. 84-8-502 provides that a person who acquires a security entitlement (84-8-501(b)) for value and without notice of an adverse claim to the entitlement is protected from a person with an adverse claim (84-8-102(a)(1)) to the entitlement, whether or not they can trace the claim to the rights to the entitlement to the one acquiring the security entitlement. This section protects those who are, or have the right to be, "owners" of a security account. In contrast, 84-8-510 protects those who have acquired an interest in a security entitlement for value and without notice, such as secured parties.


 



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