400.8-109. Warranties in indirect holding. - Missouri Statutes

Warranties in indirect holding.

400.8-109. (a) A person who originates an entitlement order to asecurities intermediary warrants to the securities intermediary that:

(1) The entitlement order is made by an appropriate person, or if theentitlement order is by an agent, the agent has actual authority to act onbehalf of the appropriate person; and

(2) There is no adverse claim to the security entitlement.

(b) A person who delivers a security certificate to a securitiesintermediary for credit to a securities account or originates aninstruction with respect to an uncertificated security directing that theuncertificated security be credited to a securities account makes to thesecurities intermediary the warranties specified in section 400.8-108(a) or(b).

(c) If a securities intermediary delivers a security certificate toits entitlement holder or causes its entitlement holder to be registered asthe owner of an uncertificated security, the securities intermediary makesto the entitlement holder the warranties specified in section 400.8-108(a)or (b).

(L. 1974 S.B. 425, A.L. 1979 H.B. 502, A.L. 1997 S.B. 6)

*Transferred 1992; formerly 400.8-108

*No continuity with § 400.8-109 as repealed by L. 1997 S.B. 6 § A.