408.402 Assurance that endorsement or instruction is effective.

200 words·~1 min read·/wi/chapter-408/408-402-2

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

(1)In this section:

(a)“Guaranty of the signature” means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.

(b)“Appropriate evidence of appointment or incumbency” means:

1. In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within 60 days before the date of presentation for transfer; or

2. In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence that the issuer reasonably considers appropriate.

(1m)An issuer may require the following assurance that each necessary endorsement or each instruction is genuine and authorized:

(a)In all cases, a guaranty of the signature of the person making an endorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;