§ 6A-8-109 - Warranties in indirect holding. - Rhode Island Statutes

SECTION 6A-8-109

   § 6A-8-109  Warranties in indirect holding.– (a) A person who originates an entitlement order to a securities intermediarywarrants to the securities intermediary that:

   (1) the entitlement order is made by an appropriate person,or if the entitlement order is by an agent, the agent has actual authority toact on behalf of the appropriate person; and

   (2) there is no adverse claim to the security entitlement.

   (b) A person who delivers a security certificate to asecurities intermediary for credit to a securities account or originates aninstruction with respect to an uncertificated security directing that theuncertificated security be credited to a securities account makes to thesecurities intermediary the warranties specified in § 6A-8-108(a) or (b).

   (c) If a securities intermediary delivers a securitycertificate to its entitlement holder or causes its entitlement holder to beregistered as the owner of an uncertificated security, the securitiesintermediary makes to the entitlement holder the warranties specified in §6A-8-108(a) or (b).