N.Y. UCC Law § 8-511

Section 8--511. Priority Among Security Interests and Entitlement\n Holders.\n (a) Except as otherwise provided in subsections (b) and (c), if a\nsecurities intermediary does not have sufficient interests in a\nparticular financial asset to satisfy both its obligations to\nentitlement holders who have security entitlements to that financial\nasset and its obligation to a creditor of the securities intermediary\nwho has a security interest in that financial asset, the claims of\nentitlement holders, other than the creditor, have priority over the\nclaim of the creditor.\n (b) A claim of a creditor of a securities intermediary who has a\nsecurity interest in a financial asset held by a securities intermediary\nhas priority over claims of the securities intermediary's entitlement\nholders who have security entitlements with respect to that financial\nasset if the creditor has control over the financial asset.\n (c) If a clearing corporation does not have sufficient financial\nassets to satisfy both its obligations to entitlement holders who have\nsecurity entitlements with respect to a financial asset and its\nobligation to a creditor of the clearing corporation who has a security\ninterest in that financial asset, the claim of the creditor has priority\nover the claims of entitlement holders.\n