30-8-414. Wrongful registration.
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/mt/title-30/chapter-8/part-4/30-8-414·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
30-8-414 . Wrongful registration.
(1)Except as otherwise provided in 30-8-416 , an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered:
(a)pursuant to an ineffective indorsement or instruction;
(b)after a demand that the issuer not register transfer became effective under 30-8-413
(1)and the issuer did not comply with 30-8-413 (2);
(c)after the issuer had been served with an injunction, restraining order, or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or
(d)by an issuer acting in collusion with the wrongdoer.
(2)An issuer that is liable for wrongful registration of transfer under subsection
(1)on demand shall provide the person entitled to the security with a like certificated or uncertificated security, and any payments or distributions that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer's liability to provide the person with a like security is governed by 30-8-220 .
(3)Except as otherwise provided in subsection
(1)or in a law relating to the collection of taxes, an issuer is not liable to an owner or other person suffering loss as a result of the registration of a transfer of a security if registration was made pursuant to an effective indorsement or instruction.