8.8A-109 - A-109. Warranties in indirect holding. - Virginia Statutes

§ 8.8A-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 theentitlement order is by an agent, the agent has actual authority to act onbehalf of the appropriate person; and

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

(b) A person who delivers a security certificate to a securities intermediaryfor credit to a securities account or originates an instruction with respectto an uncertificated security directing that the uncertificated security becredited to a securities account makes to the securities intermediary thewarranties specified in § 8.8A-108 (a) or (b).

(c) If a securities intermediary delivers a security certificate to itsentitlement holder or causes its entitlement holder to be registered as theowner of an uncertificated security, the securities intermediary makes to theentitlement holder the warranties specified in § 8.8A-108 (a) or (b).

(1996, c. 216.)