Colorado § 4-8-306 Effect of guaranteeing signature, indorsement, or instruction

Colorado Statutes

§ 4-8-306 — Effect of guaranteeing signature, indorsement, or instruction

Colorado § 4-8-306

Title 04Uniform

Art.Investment Securities

This text of Colorado § 4-8-306 (Effect of guaranteeing signature, indorsement, or instruction) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 4-8-306 (2026).

Text

(a)A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing:

(1)The signature was genuine;

(2)The signer was an appropriate person to indorse, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person; and

(3)The signer had legal capacity to sign.

(b)A person who guarantees a signature of the originator of an instruction warrants that at the time of signing:

(1)The signature was genuine;

(2)The signer was an appropriate person to originate the instruction, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person, if the person specified in the instruction as the registered owner was, in fact, the registered o

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(a)
A person who guarantees a signature of an indorser of a security certificate
warrants that at the time of signing:

(1) The signature was genuine;

(2) The signer was an appropriate person to indorse, or if the signature is by
an agent, the agent had actual authority to act on behalf of the appropriate person;
and

(3) The signer had legal capacity to sign.

(b) A person who guarantees a signature of the originator of an instruction
warrants that at the time of signing:

(1) The signature was genuine;

(2) The signer was an appropriate person to originate the instruction, or if the
signature is by an agent, the agent had actual authority to act on behalf of the
appropriate person, if the person specified in the instruction as the registered
owner was, in fact, the registered owner, as to which fact the signature guarantor
does not make a warranty; and

(3) The signer had legal capacity to sign.

(c) A person who specially guarantees the signature of an originator of an
instruction makes the warranties of a signature guarantor under subsection (b) of
this section and also warrants that at the time the instruction is presented to the
issuer:

(1) The person specified in the instruction as the registered owner of the
uncertificated security will be the registered owner; and

(2) The transfer of the uncertificated security requested in the instruction
will be registered by the issuer free from all liens, security interests, restrictions,
and claims other than those specified in the instruction.

(d) A guarantor under subsections (a) and (b) of this section or a special
guarantor under subsection (c) of this section does not otherwise warrant the
rightfulness of the transfer.

(e) A person who guarantees an indorsement of a security certificate makes
the warranties of a signature guarantor under subsection (a) of this section and also
warrants the rightfulness of the transfer in all respects.

(f) A person who guarantees an instruction requesting the transfer of an
uncertificated security makes the warranties of a special signature guarantor under
subsection (c) of this section and also warrants the rightfulness of the transfer in all
respects.

(g) An issuer may not require a special guaranty of signature, a guaranty of
indorsement, or a guaranty of instruction as a condition to registration of transfer.

(h) The warranties under this section are made to a person taking or dealing
with the security in reliance on the guaranty, and the guarantor is liable to the
person for loss resulting from their breach. An indorser or originator of an
instruction whose signature, indorsement, or instruction has been guaranteed is
liable to a guarantor for any loss suffered by the guarantor as a result of breach of
the warranties of the guarantor.