70A-8-108 - Warranties in indirect holding. - Utah Statutes

70A-8-108. Warranties in indirect holding.
(1) A person who originates an entitlement order to a securities intermediary warrants tothe securities intermediary that:
(a) the entitlement order is made by an appropriate person, or if the entitlement order isby an agent, the agent has actual authority to act on behalf of the appropriate person; and
(b) there is no adverse claim to the security entitlement.
(2) A person who delivers a security certificate to a securities intermediary for credit to asecurities account or originates an instruction with respect to an uncertificated security directingthat the uncertificated security be credited to a securities account makes to the securitiesintermediary the warranties specified in Subsection 70A-8-107(1) or (2).
(3) If a securities intermediary delivers a security certificate to its entitlement holder orcauses its entitlement holder to be registered as the owner of an uncertificated security, thesecurities intermediary makes to the entitlement holder the warranties specified in Subsection70A-8-107(1) or (2).

Repealed and Re-enacted by Chapter 204, 1996 General Session