(810 ILCS 5/8-401) (from Ch. 26, par. 8-401)
Sec. 8-401. Duty of issuer to register transfer.
(a) 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:
(1) under the terms of the security the person
seeking registration of transfer is eligible to have the security registered in its name;
(2) the indorsement or instruction is made by the
appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;
(3) reasonable assurance is given that the
indorsement or instruction is genuine and authorized (Section 8-402);
(4) any applicable law relating to the collection of
taxes has been complied with;
(5) the transfer does not violate any restriction on
transfer imposed by the issuer in accordance with Section 8-204;
(6) a demand that the issuer not register transfer
has not become effective under Section 8-403, or the issuer has complied with Section 8-403(b) but no legal process or indemnity bond is obtained as provided in Section 8-403(d); and
(7) the transfer is in fact rightful or is to a
protected purchaser.
(b) If an issuer is under a duty to register a transfer of a security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person's principal for loss resulting from unreasonable delay in registration or failure or refusal to register the transfer.
(Source: P.A. 89-364, eff. 1-1-96.)
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Last modified: February 18, 2015