§ 6A-8-203 - Staleness as notice of defect or defense. - Rhode Island Statutes

SECTION 6A-8-203

   § 6A-8-203  Staleness as notice of defector defense. – After an act or event, other than a call that has been revoked, creating aright to immediate performance of the principal obligation represented by acertificated security or setting a date on or after which the security is to bepresented or surrendered for redemption or exchange, a purchaser is chargedwith notice of any defect in its issue or defense of the issuer, if the act orevent:

   (1) requires the payment of money, the delivery of acertificated security, the registration of transfer of an uncertificatedsecurity, or any of them on presentation or surrender of the securitycertificate, the money or security is available on the date set for payment orexchange, and the purchaser takes the security more than one year after thatdate; or

   (2) is not covered by paragraph (1) and the purchaser takesthe security more than two years after the date set for surrender orpresentation or the date on which performance became due.