Securities Account Law and Legal Definition
Securities accounts are accounts used to make security transactions and also to deposit securities. Securities accounts record details of financial assets held by a person or any organization. With a securities account, a person can make timely payment of all transactions, purchase and buy securities, and transfer or receive securities from third persons.
The following is an example of a federal statute defining securities account:
According to U.C.C. § 8-501 (a), securities account means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.
