47-8109. Warranties in indirect holding
A. A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:
1. 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 person; and
2. There is no adverse claim to the security entitlement.
B. A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in section 47-8108, subsection A or B.
C. If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in section 47-8108, subsection A or B.
Section: Previous 47-8102 47-8103 47-8104 47-8105 47-8106 47-8107 47-8108 47-8109 47-8110 47-8111 47-8112 47-8113 47-8114 47-8115 47-8116 NextLast modified: October 13, 2016