§12A-8-105. Notice of Adverse Claim.
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Notice of Adverse Claim.
(a)A person has notice of an adverse claim if:
(1)the person knows of the adverse claim;
(2)the person is aware of facts sufficient to indicate
that there is a significant probability that the
adverse claim exists and deliberately avoids
information that would establish the existence of the
adverse claim; or
(3)the person has a duty, imposed by statute or
regulation, to investigate whether an adverse claim
exists, and the investigation so required would
establish the existence of the adverse claim.
(b)Having knowledge that a financial asset or interest therein is or has been transferred by a representative imposes no duty of inquiry into the rightfulness of a transaction and is not notice of an adverse claim. However, a person who knows that a representative has transferred a financial asset or interest therein in a transaction that is, or whose proceeds are being used, for the individual benefit of the representative or otherwise in breach of duty has notice of an adverse claim.
(c)An act or event that creates a right to immediate performance of the principal obligation represented by a security certificate or sets a date on or after which the certificate is to be presented or surrendered for redemption or exchange does not itself constitute notice of an adverse claim except in the case of a transfer more than:
(1)one
(1)year after a date set for presentment or
surrender for redemption or exchange; or
(2)six
(6)months after a date set for payment of money
against presentation or surrender of the certificate,
if money was available for payment on that date.
(d)A purchaser of a certificated security has notice of an adverse claim if the security certificate:
(1)whether in bearer or registered form, has been
indorsed "for collection" or "for surrender" or for
some other purpose not involving transfer; or
(2)is in bearer form and has on it an unambiguous
statement that it is the property of a person other
than the transferor, but the mere writing of a name on
the certificate is not such a statement.
(e)Filing of a financing statement under Article 9 of this code is not notice of an adverse claim to a financial asset. Added by Laws 1961, p. 152, § 8-105. Amended by Laws 1984, c. 76, § 6, eff. Nov. 1, 1984; Laws 1995, c. 242, § 5, eff. Feb. 1, 1996.