§8-1402. Assurance that indorsement or instruction is effective
(1).
An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized:
(a).
In all cases, a guaranty of the signature of the person making an indorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(b).
If the indorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign;
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(c).
If the indorsement is made or the instruction is originated by a fiduciary pursuant to section 8‑1107, subsection (1), paragraph (d) or (e), appropriate evidence of appointment or incumbency;
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(d).
If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(e).
If the indorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.
[PL 1997, c. 429, Pt. B, §2 (NEW).]
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(2).
An issuer may elect to require reasonable assurance beyond that specified in this section.
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(3).
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; and
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(b).
"Appropriate evidence of appointment or incumbency" means:
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(i)
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 of the court and dated within 60 days before the date of presentation for transfer; or
(ii)
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 the issuer reasonably considers appropriate.
[PL 1997, c. 429, Pt. B, §2 (NEW).]
SECTION HISTORY
PL 1997, c. 429, §B2 (NEW).