§ 41-47. Protection of registering entity. - North Carolina Statutes

§ 41‑47.  Protection ofregistering entity.

(a)        A registeringentity is not required to offer or to accept a request for securityregistration in beneficiary form. If a registration in beneficiary form isoffered by a registering entity, the owner requesting registration inbeneficiary form assents to the protections given to the registering entity bythis Article.

(b)        By accepting arequest for registration of a security in beneficiary form, the registeringentity agrees that the registration will be implemented on death of thedeceased owner as provided in this Article.

(c)        A registeringentity is discharged from all claims to a security by the estate, creditors,heirs, or devisees of a deceased owner if it registers a transfer of a securityin accordance with G.S. 41‑46 and does so in good faith reliance (i) onthe registration, (ii) on this Article, and (iii) on information provided to itby affidavit of the personal representative of the deceased owner, or by thesurviving beneficiary or by the surviving beneficiary's representatives, orother information available to the registering entity. The protections of thisArticle do not extend to a reregistration or payment made after a registeringentity has received written notice, addressed to the registering entity, fromany claimant to any interest in the security objecting to implementation of aregistration in beneficiary form. No other notice or other informationavailable to the registering entity affects its right to protection under thisArticle.

(d)        The protectionprovided by this Article to the registering entity of a security does notaffect the rights of beneficiaries in disputes between themselves and otherclaimants to ownership of the security transferred or its value or proceeds. (2005‑411, s. 1; 2006‑226,s. 11.)