400.8-203. Staleness as notice of defects or defenses. - Missouri Statutes

Staleness as notice of defects or defenses.

400.8-203. After an act or event, other than a call that has beenrevoked, creating a right to immediate performance of the principalobligation represented by a certificated security or setting a date on orafter which the security is to be presented or surrendered for redemptionor exchange, a purchaser is charged with notice of any defect in its issueor defense of the issuer, if the act or event:

(1) Requires the payment of money, the delivery of a certificatedsecurity, the registration of transfer of an uncertificated security, orany of them on presentation or surrender of the security certificate, themoney or security is available on the date set for payment or exchange, andthe purchaser takes the security more than one year after that date; or

(2) Is not covered by paragraph (1) and the purchaser takes thesecurity more than two years after the date set for surrender orpresentation or the date on which performance became due.

(L. 1963 p. 503 § 8-203, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6)