47-8203. Staleness as notice of defect or defense
After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is charged with notice of any defect in its issue or defense of the issuer, if the act or event:
1. Requires the payment of money, the delivery of a certificated security, the registration of transfer of an uncertificated security, or any of them on presentation or surrender of the security certificate, the money or security is available on the date set for payment or exchange, and the purchaser takes the security more than one year after that date; or
2. Is not covered by paragraph 1 and the purchaser takes the security more than two years after the date set for surrender or presentation or the date on which performance became due.
Section: Previous 47-8112 47-8113 47-8114 47-8115 47-8116 47-8201 47-8202 47-8203 47-8204 47-8205 47-8206 47-8207 47-8208 47-8209 47-8210 NextLast modified: October 13, 2016