400.8-105. Notice of adverse claim. - Missouri Statutes

Notice of adverse claim.

400.8-105. (a) A person has notice of an adverse claim if:

(1) The person knows of the adverse claim;

(2) The person is aware of facts sufficient to indicate that there isa significant probability that the adverse claim exists and deliberatelyavoids information that would establish the existence of the adverse claim;or

(3) The person has a duty, imposed by statute or regulation, toinvestigate whether an adverse claim exists, and the investigation sorequired would establish the existence of the adverse claim;

(b) Having knowledge that a financial asset or interest therein is orhas been transferred by a representative imposes no duty of inquiry intothe rightfulness of a transaction and is not notice of an adverse claim.However, a person who knows that a representative has transferred afinancial asset or interest therein in a transaction that is, or whoseproceeds are being used, for the individual benefit of the representativeor otherwise in breach of duty has notice of an adverse claim;

(c) An act or event that creates a right to immediate performance ofthe principal obligation represented by a security certificate or sets adate on or after which the certificate is to be presented or surrenderedfor redemption or exchange does not itself constitute notice of an adverseclaim except in the case of a transfer more than:

(1) One year after a date set for presentment or surrender forredemption or exchange; or

(2) Six months after a date set for payment of money againstpresentation or surrender of the certificate, if money was available forpayment on that date;

(d) A purchaser of a certificated security has notice of an adverseclaim if the security certificate:

(1) Whether in bearer or registered form, has been indorsed "forcollection" or "for surrender" or for some other purpose not involvingtransfer; or

(2) Is in bearer form and has on it an unambiguous statement that itis the property of a person other than the transferor, but the mere writingof a name on the certificate is not such a statement;

(e) Filing of a financing statement under article 9 of this chapteris not notice of an adverse claim to a financial asset.

(L. 1963 p. 503 § 8-105, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6)

*No continuity with § 400.8-105 as repealed by L. 1997 S.B. 6 § A.