§ 25-8-405. Replacement of lost, destroyed, or wrongfully taken security certificate. - North Carolina Statutes

§25‑8‑405.  Replacement of lost, destroyed, or wrongfully takensecurity certificate.

(a)        If an owner of acertificated security, whether in registered or bearer form, claims that thecertificate has been lost, destroyed, or wrongfully taken, the issuer shallissue a new certificate if the owner:

(1)        So requests beforethe issuer has notice that the certificate has been acquired by a protectedpurchaser;

(2)        Files with theissuer a sufficient indemnity bond; and

(3)        Satisfies otherreasonable requirements imposed by the issuer.

(b)        If, after the issueof a new security certificate, a protected purchaser of the originalcertificate presents it for registration of transfer, the issuer shall registerthe transfer unless an overissue would result. In that case, the issuer'sliability is governed by G.S. 25‑8‑210. In addition to any rightson the indemnity bond, an issuer may recover the new certificate from a personto whom it was issued or any person taking under that person, except aprotected purchaser. (1941, c. 353, s. 20; G.S., s. 55‑100; 1955, c.1371, s. 2; 1965, c. 700, s. 1; 1989, c. 588, s. 1; 1997‑181, s. 1.)