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Principle and utility in the structure of securities ownership.(response to article by Steven L. Schwarcz and Joanna Benjamin in this issue, p. 309)

In Intermediary Risk in the Indirect Holding a whole for Securities, (1) Professors Schwarcz and Benjamin take as their central motivating principle the time-honored idea that nemo dat quod non habet, or no individual gives more than he or she has. This principle, also known as the "derivation principle" of attribute ownership because it maintains that the rights of each characteristic owner should be derived from the rights of the property's previous holder (2) provides a window onto a certain quantity of of the most central and intractable questions in the commercial law field.

The nemo dat





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