§ 25-8-115. Securities intermediary and others not liable to adverse claimant.

159 words·~1 min read·/nc/chapter-25/25-8-115

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

A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:

(1)Took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or

(2)Acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or

(3)In the case of a security certificate that has been stolen, acted with notice of the adverse claim. (1997-181, s. 1.)