Section 440.8107 – “Appropriate Person” Defined; Effectiveness of Indorsement, Instruction, or Entitlement Order.
440.8107 “Appropriate person” defined; effectiveness of indorsement, instruction, or entitlement order. Sec. 8107. (1) “Appropriate person” means 1 or more of the following: (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. (b) With respect to an instruction, the […]
Section 440.8108 – Warranty to Purchaser.
440.8108 Warranty to purchaser. Sec. 8108. (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, and warrants to any subsequent purchaser all of the following: (a) The certificate is genuine and has not been materially altered. (b) The […]
Section 440.8109 – Warranty to Securities Intermediary.
440.8109 Warranty to securities intermediary. Sec. 8109. (1) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary both of the following: (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 […]
Section 440.8110 – Jurisdiction.
440.8110 Jurisdiction. Sec. 8110. (1) The law of the issuer’s jurisdiction, as specified in subsection (4), governs all of the following: (a) The validity of a security. (b) The rights and duties of the issuer with respect to registration of transfer. (c) The effectiveness of registration of transfer by the issuer. (d) Whether the issuer […]
Section 440.8111 – Rule Adopted by Clearing Corporation; Effect.
440.8111 Rule adopted by clearing corporation; effect. Sec. 8111. 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. History: Add. 1998, […]
Section 440.8112 – Reaching Interest of Debtor.
440.8112 Reaching interest of debtor. Sec. 8112. (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). However, a certificated security for which the certificate has […]
Section 440.8113 – Sale or Purchase of Security; Enforcement of Contract or Contract Modification.
440.8113 Sale or purchase of security; enforcement of contract or contract modification. Sec. 8113. 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 […]
Section 440.8114 – Action on Certificated Security Against Issuer; Rules.
440.8114 Action on certificated security against issuer; rules. Sec. 8114. 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. (b) If the effectiveness of a signature is put in issue, […]
Section 440.8115 – Transferring or Dealing With Financial Asset; Liability of Securities Intermediary, Broker, or Agent.
440.8115 Transferring or dealing with financial asset; liability of securities intermediary, broker, or agent. Sec. 8115. 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 […]
Section 440.8116 – Securities Intermediary as Purchaser for Value of Financial Asset; Acquisition of Security Entitlement for Value.
440.8116 Securities intermediary as purchaser for value of financial asset; acquisition of security entitlement for value. Sec. 8116. 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 […]