§ 4-8-109 — Warranties in indirect holding

Colorado § 4-8-109

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Investment Securities

Text

(a) A person who originates an
entitlement order to a securities intermediary warrants to the securities
intermediary that:

(1) The entitlement order is made by an appropriate person, or if the
entitlement order is by an agent, the agent has actual authority to act on behalf of
the appropriate person; and

(2) There is no adverse claim to the security entitlement.

(b) A person who delivers a security certificate to a securities intermediary
for credit to a securities account or originates an instruction with respect to an
uncertificated security directing that the uncertificated security be credited to a
securities account makes to the securities intermediary the warranties specified in
section 4-8-108 (a) or (b).

(c) If a securities intermediary delivers a security certificate to its
entitlement holder or causes its entitlement holder to be registered as the owner of
an uncertificated security, the securities intermediary makes to the entitlement
holder the warranties specified in section 4-8-108 (a) or (b).

Legislative History

Source: L. 96: Entire article R&RE, p. 212, � 2, effective July 1.