(a) A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that:
(1) The certificate is genuine;
(2) The person's own participation in the issue of the security is within the person's capacity and within the scope of the authority received by the person from the issuer; and
(3) The person has reasonable grounds to believe that the certificated security is in the form and within the amount the issuer is authorized to issue.
(b) Unless otherwise agreed, a person signing under subsection (a) of this section does not assume responsibility for the validity of the security in other respects. (1965, c. 700, s. 1; 1989, c. 588, s. 1; 1997-181, s. 1.)
Sections: Previous 25-8-201 25-8-202 25-8-203 25-8-204 25-8-205 25-8-206 25-8-207 25-8-208 25-8-209 25-8-210 25-8-301 25-8-302 25-8-303 25-8-304 25-8-305 Next
Last modified: March 23, 2014