§ 18-11-6 - Adverse claims. - Rhode Island Statutes

SECTION 18-11-6

   § 18-11-6  Adverse claims. – (a) A person asserting a claim of beneficial interest adverse to the transferof a security pursuant to an assignment by a fiduciary may give the corporationor transfer agent written notice of the claim. The corporation or transferagent is not put on notice unless the written notice identifies the claimant,the registered owner, and the issue of which the security is a part, providesan address for communications directed to the claimant, and is received beforethe transfer. Nothing in this chapter relieves the corporation or transferagent of any liability for making or refusing to make the transfer after it isput on notice, unless it proceeds in the manner authorized in subsection (b) ofthis section.

   (b) As soon as practicable after the presentation of asecurity for transfer pursuant to an assignment by a fiduciary, a corporationor transfer agent which has received notice of a claim of beneficial interestadverse to the transfer may send notice of the presentation by registered orcertified mail to the claimant at the address given by the claimant. If thecorporation or transfer agent mails the notice, it shall withhold the transferfor thirty (30) days after the mailing and shall then make the transfer unlessrestrained by a court order.