8.8A-205 - A-205. Effect of unauthorized signature on security certificate. - Virginia Statutes

§ 8.8A-205. Effect of unauthorized signature on security certificate.

An unauthorized signature placed on a security certificate before or in thecourse of issue is ineffective, but the signature is effective in favor of apurchaser for value of the certificated security if the purchaser is withoutnotice of the lack of authority and the signing has been done by:

(1) an authenticating trustee, registrar, transfer agent, or other personentrusted by the issuer with the signing of the security certificate or ofsimilar security certificates, or the immediate preparation for signing ofany of them; or

(2) an employee of the issuer, or of any of the persons listed in paragraph(1), entrusted with responsible handling of the security certificate.

(1996, c. 216.)