Security entitlement
Security entitlement: The rights an investor has in a security held through a broker or bank, defined in UCC Article 8. Under UCC § 8-503, assets a securities intermediary holds for entitlement holders "are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary."

What security entitlement means
In short, security entitlement is a term you will meet in court papers, rules and legal research. The definition above gives its usual meaning in American civil practice. However, the exact meaning can depend on the rule, statute or court decision that uses it. So it helps to read the term in context.
Where security entitlement comes up
The term is used across many kinds of cases. For example, you may see it in pleadings, motions and court orders. To see it in context, browse the motions and procedures library or the Learn the Law topics.
Read the source: Street name.
How to research the term
Start with the primary source. For example, if security entitlement appears in a federal rule, read the rule itself and its official notes. After that, check your court’s local rules and any standing orders from the judge. In addition, search recent decisions from your own state or federal district. They show how courts read security entitlement in practice. Because state rules often differ, our state procedures guide links to each state’s official rules. Above all, make sure the version you read is still in force.
You can read the current federal court rules online for free.
Related legal terms
- Secondary source: material that explains or analyzes the law, such as a treatise, a law review article or a legal encyclopedia. A secondary source is not itself the law. However, it can help you find and understand the primary sources, such as statutes, rules and court decisions, that do bind a court.
- Secured party: under UCC Article 9, a person in whose favor a security interest is created or provided for under a security agreement, among others (UCC § 9-102(a)(73)) — for example, a lender holding a lien on a car or equipment.
- Securitization: pooling loans or receivables — such as mortgages, auto loans or credit-card balances — and selling interests in the pool to investors, who are paid from the borrowers' payments.
- Security (investment): under federal securities law, a broad category of investments including notes, stocks, bonds, evidences of indebtedness and investment contracts.
Why precise terms matter
Legal words often look like everyday words, but they can carry a precise meaning. Because of that, a small misreading can change how you understand a deadline, a duty or a right. Our glossary keeps each definition short and links it to the procedures where it matters.
Sources
Sources last reviewed: 2026-10-24
Lawtopolis provides legal information and education, not legal advice. Using this site does not create an attorney-client relationship. Laws and court rules vary by jurisdiction and change over time; verify every authority against the official source and consult a licensed attorney in your jurisdiction about your situation.
