Creation of pledge or hypothecation requires depository registration and pledgee concurrence before transfer. Creation of a pledge or hypothecation requires a beneficial owner's application through the participant, participant verification and forwarding, and depository registration after concurrence of the pledgee or hypothecatee. The depository must notify participants of registration or refusal with reasons. Cancellation of entries requires prior concurrence of the pledgee. Upon invocation, the pledgee or, with required concurrence, the hypothecatee is to be registered as beneficial owner and participants must update records. Transfers of securities subject to a notice or entry of pledge or hypothecation are prohibited without the pledgee's or hypothecatee's concurrence.