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Home » US Law » 2019 US Virgin Islands Code » Title 11A - Uniform Commercial Code » Article 8 - Investment Securities » Part 4 - Registration » § 8-402. Assurance that indorsement or instruction is effective
  • (a) An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized:

    • (1) in all cases a guaranty of the signature of the person making an indorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;

    • (2) if the indorsement is made or the instruction is originated by an appropriate assurance of actual authority to sign;

    • (3) if the indorsement is made or the instruction is originated by a fiduciary pursuant to § 8–107(a)(4) or (a)(5), appropriate evidence of appointment or incumbency;

    • (4) if there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and

    • (5) if the indorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.

  • (b) An issuer may elect to require reasonable assurance beyond that specified in this section.

  • (c) In this section:

    • (1) “Guaranty of the signature” means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.

    • (2) “Appropriate evidence of appointment or incumbency” means:

      • (i) in the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within 60 days before the date of presentation for transfer; or

      • (ii) in any other case a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence the issuer reasonably considers appropriate.