§ 4-8-205 — Effect of unauthorized signature on security certificate

An
unauthorized signature placed on a security certificate before or in the course of
issue is ineffective, but the signature is effective in favor of a purchaser for value of
the certificated security if the purchaser is without notice of the lack of authority
and the signing has been done by:

(1) An authenticating trustee, registrar, transfer agent, or other person
entrusted by the issuer with the signing of the security certificate or of similar
security certificates, or the immediate preparation for signing of any of them; or

(2) An employee of the issuer, or of any of the persons listed in paragraph (1)
of this section, entrusted with responsible handling of the security certificate.

Legislative History

Source: L. 96: Entire article R&RE, p. 218, � 2, effective July 1.