§ 554.8107 — Whether indorsement, instruction, or entitlement order is effective

Iowa § 554.8107

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. “Appropriate person” means:
a. with respect to an indorsement, the person specified by a security certificate or by an
effective special indorsement to be entitled to the security;
b. with respect to an instruction, the registered owner of an uncertificated security;
c. with respect to an entitlement order, the entitlement holder;
d. if the person designated in paragraph “a”, “b”, or “c” is deceased, the designated
person’s successor taking under other law or the designated person’s personal representative
acting for the estate of the decedent; or
e. if the person designated in paragraph “a”, “b”, or “c” lacks capacity, the designated
person’s guardian, conservator, or other similar representative who has power under other
law to transfer the security or financial asset.
2. An indorsement, instruction, or entitlement order is effective if:
a. it is made by the appropriate person;
b. itismadebyapersonwhohaspowerunderthelawofagencytotransferthesecurityor
financial asset on behalf of the appropriate person, including, in the case of an instruction or
entitlement order, a person who has control under section 554.8106, subsection 3, paragraph
“b”, or subsection 4, paragraph “b”; or
c. the appropriate person has ratified it or is otherwise precluded from asserting its
ineffectiveness.

3. An indorsement, instruction, or entitlement order made by a representative is effective
even if:
a. the representative has failed to comply with a controlling instrument or with the law of
the state having jurisdiction of the representative relationship, including any law requiring
the representative to obtain court approval of the transaction; or
b. therepresentative’sactioninmakingtheindorsement, instruction, orentitlementorder
or using the proceeds of the transaction is otherwise a breach of duty.
4. If a security is registered in the name of or specially indorsed to a person described as
a representative, or if a securities account is maintained in the name of a person described
as a representative, an indorsement, instruction, or entitlement order made by the person is
effective even though the person is no longer serving in the described capacity.
5. Effectiveness of an indorsement, instruction, or entitlement order is determined as of
the date the indorsement, instruction, or entitlement order is made, and an indorsement,
instruction, or entitlement order does not become ineffective by reason of any later change
of circumstances.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §554.8107]