425.126 Execution on transferable securities, security entitlements, or an option or

531 words·~2 min read·/ky/425-126

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

right to acquire a security -- Requirements of the order -- Duty of corporate

officials.

(1)If any claim be made by attachment, garnishment, or other judicial order to a

security or security entitlement, as defined in KRS 355.8-102(1), such order shall

not be valid as against any securities intermediary, as defined in KRS 355.8-102(1),

or any issuer, as defined in KRS 355.8-201, or nominee or agent of either having

any interest in, custody of, or control over such security or security entitlement,

unless such order specifies the following:

(a)For a security, the name of the issuer, the class or series of the security, or

both, the number of shares or other units of interest represented by the

security, the name of the debtor and the name of the person, if different from

the debtor, having an account on the books of the securities intermediary or

issuer in which such security is shown;

(b)For an option or right to acquire a security, the name of the issuer, the class or

series of the security in which the option or right to acquire exists, the name of

the debtor and the name of the person, if different from the debtor, having an

account on the books of the securities intermediary or issuer in which such

option or right is shown; or

(c)For a security entitlement, other than a security or an option or right to acquire

a security, the name of the debtor and the name of the person, if different from

the debtor, having an account on the books of the securities intermediary or

issuer in which such security entitlement is shown.

(2)An attachment, garnishment, or other judicial order of the kind described in

subsection

(1)of this section which does not set forth all the elements of

identification required by subsection

(1)of this section shall in no manner bind or

give notice of such claim to any securities intermediary, as defined in KRS 355.8-

102(1), or any issuer, as defined in KRS 355.8-201, or nominee or agent of either

having an interest in, custody of, or control over such security, or option or right to

acquire such security, or security entitlement, and such securities intermediary,

issuer, nominee, or agent may transfer, pledge, or in any manner deal with such

security or option, or right to acquire such security or security entitlement in

disregard of such order or claim without liability to the claimant.

(3)It shall be the duty of every person mentioned in subsections

(1)and

(2)of this

section to whom any plaintiff or any judgment creditor shall apply therefor, in good

faith and for a proper purpose stated in the request, to furnish him or her a written

statement setting forth any reasonably requested information in such person's

possession, custody, or control that concerns the ownership of or records concerning

ownership of a security, an option or right to acquire a security, or a security

entitlement concerning a specifically identified person. The statement shall be

provided within ten

(10)days of receipt of the written request and a failure to

perform this duty may be punished by the court as a contempt.