§ 7-11.1-9 - Protection of registering entity. - Rhode Island Statutes

SECTION 7-11.1-9

   § 7-11.1-9  Protection of registeringentity. – (a) A registering entity is not required to offer or to accept a request forsecurity registration in beneficiary form. If a registration in beneficiaryform is offered by a registering entity, the owner requesting registration inbeneficiary form assents to the protections given to the registering entitypursuant to the chapter.

   (b) By accepting a request for registration of a security inbeneficiary form, the registering entity agrees that the registration will beimplemented on death of the deceased owner as provided in this chapter.

   (c) A registering entity is discharged from all claims to asecurity by the estate, creditor, heirs, or devisees of a deceased owner if itregisters a transfer of the security in accordance with § 7-11.1-8 anddoes so in good faith reliance:

   (i) On the registration,

   (ii) On the provisions of this chapter, and

   (iii) On information provided to it by affidavit of thepersonal representative of the deceased owner, or by the surviving beneficiaryor by the surviving beneficiary's representatives, or other informationavailable to the registering entity.

   (2) The protections of this chapter do not extend to areregistration or payment made after a registering entity has received writtennotice from any claimant to any interest in the security objecting toimplementation of a registration in beneficiary form. No other notice or otherinformation available to the registering entity affects its right to protectionunder this chapter.

   (d) The protection provided pursuant to this chapter to theregistering entity of a security does not affect the rights of beneficiaries indisputes between themselves and other claimants to ownership of the securitytransferred or its value or proceeds.