Protection of registering entity
Sec. 13. (a) A registering entity is not required to offer or to
accept a request for security registration in beneficiary form. If a
registering entity offers registration in beneficiary form, the owner
requesting registration in beneficiary form assents to the protections
given to the registering entity by this chapter.
(b) By accepting a request for registration of a security in
beneficiary form, the registering entity agrees that the registration
will be implemented on the death of the deceased owner as provided
in this chapter.
(c) A registering entity is discharged from all claims to a security
by the estate, creditors, heirs, or devisees of a deceased owner if the
registering entity registers a transfer of the security in accordance
with section 11 of this chapter and does so in good faith reliance on:
(1) the registration;
(2) this chapter; and
(3) information provided to it by:
(A) affidavit of the personal representative of the deceased
owner;
(B) the surviving beneficiary;
(C) the surviving beneficiary's representatives; or
(D) other information available to the registering entity.
(d) The protections of this chapter do not extend to a
reregistration or payment made after a registering entity has received
written notice from any claimant to any interest in the security
objecting to implementation of a registration in beneficiary form. No
other notice or other information available to the registering entity
affects the registering entity's right to protection under this chapter.
(e) The protection provided by this chapter to the registering
entity of a security does not affect the rights of beneficiaries in
disputes between themselves and other claimants to ownership of the
security transferred or its value or proceeds.
As added by P.L.2-2002, SEC.2.
Last modified: May 24, 2006