§ 11-8-501. Securities Account; Acquisition of Security Entitlement From Securities Intermediary
“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. Except as otherwise provided in subsections […]
§ 11-8-502. Assertion of Adverse Claim Against Entitlement Holder
An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under Code Section 11-8-501 for value and without notice of the adverse claim. History. Code 1981, § 11-8-502 , enacted […]
§ 11-8-503. Property Interest of Entitlement Holder in Financial Asset Held by Securities Intermediary
To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of […]
§ 11-8-504. Duty of Securities Intermediary to Maintain Financial Asset
A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries. […]
§ 11-8-303. Protected Purchaser
“Protected purchaser” means a purchaser of a certificated or uncertificated security, or of an interest therein, who: Gives value; Does not have notice of any adverse claim to the security; and Obtains control of the certificated or uncertificated security. In addition to acquiring the rights of a purchaser, a protected purchaser also acquires its interest […]
§ 11-8-304. Indorsement
An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be transferred or who has power to transfer it. A holder may convert a blank indorsement to a special indorsement. An indorsement purporting to be only of part […]
§ 11-8-305. Instruction
If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized and the issuer may rely on it as completed, even though it has been completed incorrectly. Unless otherwise agreed, a person initiating an instruction assumes only the obligations imposed by Code […]
§ 11-8-306. Effect of Guaranteeing Signature, Indorsement, or Instruction
A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing: The signature was genuine; The signer was an appropriate person to indorse, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person; and The […]
§ 11-8-307. Purchaser’s Right to Requisites for Registration of Transfer
Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but if the transfer is not for value, a transferor need not comply unless the purchaser pays the necessary […]
§ 11-8-401. Duty of Issuer to Register Transfer
If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security, the issuer shall register the transfer as requested if: Under the terms of the security the person seeking registration […]