§ 25-8-205. Effect of unauthorized signature on security certificate. - North Carolina Statutes

§25‑8‑205.  Effect of unauthorized signature on securitycertificate.

An unauthorized signatureplaced on a security certificate before or in the course of issue isineffective, but the signature is effective in favor of a purchaser for valueof the certificated security if the purchaser is without notice of the lack ofauthority and the signing has been done by:

(1)        An authenticatingtrustee, registrar, transfer agent, or other person entrusted by the issuerwith the signing of the security certificate or of similar securitycertificates, or the immediate preparation for signing of any of them; or

(2)        An employee of theissuer, or of any of the persons listed in subdivision (1) of this section,entrusted with responsible handling of the security certificate. (1899,c. 733, s. 23; Rev., s. 2171; C.S., s. 3003; 1965, c. 700, s. 1; 1989, c. 588,s. 1; 1997‑181, s. 1.)