11 §8-1101. Short title
§8-1101. Short title This Article may be known and cited as the “Uniform Commercial Code – Investment Securities.” [PL 1997, c. 429, Pt. B, §2 (NEW).] SECTION HISTORY PL 1997, c. 429, §B2 (NEW).
11 §8-1102. Definitions
§8-1102. Definitions (1). As used in this Article, unless the context otherwise indicates, the following terms have the following meanings. (a). “Adverse claim” means a claim that a claimant has a property interest in a financial asset and that it is a violation of the rights of the claimant for another person to hold, […]
11 §8-1103. Rules for determining whether certain obligations and interests are securities or financial assets
§8-1103. Rules for determining whether certain obligations and interests are securities or financial assets (1). A share or similar equity interest issued by a corporation, business trust, joint stock company or similar entity is a security. [PL 1997, c. 429, Pt. B, §2 (NEW).] (2). An investment company security is a security. “Investment company […]
11 §8-1104. Acquisition of security or financial asset or interest in a security or financial asset
§8-1104. Acquisition of security or financial asset or interest in a security or financial asset (1). A person acquires a security or an interest in a security, under this Article if: (a). The person is a purchaser to whom a security is delivered pursuant to section 8‑1301; or [PL 1997, c. 429, Pt. […]
11 §8-1105. Notice of adverse claim
§8-1105. Notice of adverse claim (1). A person has notice of an adverse claim if: (a). The person knows of the adverse claim; [PL 1997, c. 429, Pt. B, §2 (NEW).] (b). The person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and […]
11 §8-1106. Control
§8-1106. Control (1). A purchaser has control of a certificated security in bearer form if the certificated security is delivered to the purchaser. [PL 1997, c. 429, Pt. B, §2 (NEW).] (2). A purchaser has control of a certificated security in registered form if the certificated security is delivered to the purchaser, and: […]
11 §8-1107. Whether indorsement, instruction or entitlement order is effective
§8-1107. Whether indorsement, instruction or entitlement order is effective (1). “Appropriate person” means: (a). With respect to an indorsement, the person specified by a security certificate or by an effective special indorsement to be entitled to the security; [PL 1997, c. 429, Pt. B, §2 (NEW).] (b). With respect to an instruction, the […]
11 §8-1108. Warranties in direct holding
§8-1108. Warranties in direct holding (1). A person who transfers a certificated security to a purchaser for value warrants to the purchaser and an indorser, if the transfer is by indorsement, warrants to any subsequent purchaser that: (a). The certificate is genuine and has not been materially altered; [PL 1997, c. 429, Pt. […]
11 §8-1109. Warranties in indirect holding
§8-1109. Warranties in indirect holding (1). A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that: (a). The entitlement order is made by an appropriate person or, if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate […]
11 §8-1110. Applicability; choice of law
§8-1110. Applicability; choice of law (1). The local law of the issuer’s jurisdiction, as specified in subsection (4), governs: (a). The validity of a security; [PL 1997, c. 429, Pt. B, §2 (NEW).] (b). The rights and duties of the issuer with respect to registration of transfer; [PL 1997, c. 429, Pt. […]
11 §8-1111. Clearing corporation rules
§8-1111. Clearing corporation rules A rule adopted by a clearing corporation governing rights and obligations among the clearing corporation and its participants in the clearing corporation is effective even if the rule conflicts with this Act and affects another party who does not consent to the rule. [PL 1997, c. 429, Pt. B, §2 […]
11 §8-1112. Creditor’s legal process
§8-1112. Creditor’s legal process (1). The interest of a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate by the officer making the attachment or levy, except as otherwise provided in subsection (4). A certificated security for which the certificate has been surrendered to the […]
11 §8-1113. Statute of frauds inapplicable
§8-1113. Statute of frauds inapplicable A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing signed or record authenticated by a party against whom enforcement is sought, even if the contract or modification is not capable of performance within one year […]
11 §8-1114. Evidentiary rules concerning certificated securities
§8-1114. Evidentiary rules concerning certificated securities (1). The following rules apply in an action on a certificated security against the issuer. (a). Unless specifically denied in the pleadings, each signature on a security certificate or in a necessary indorsement is admitted. [PL 1997, c. 429, Pt. B, §2 (NEW).] (b). If the effectiveness […]
11 §8-1115. Securities intermediary and others not liable to adverse claimant
§8-1115. Securities intermediary and others not liable to adverse claimant (1). A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal is not liable to a person […]
11 §8-1116. Securities intermediary as purchaser for value
§8-1116. Securities intermediary as purchaser for value A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary […]