§ 4-8-115 — Securities intermediary and others not liable to adverse claimant

Colorado § 4-8-115

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

Text

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.

Legislative History

Source: L. 96: Entire article R&RE, p. 215, � 2, effective July 1.