Indiana § 26-1-8.1-105 Notice of adverse claim

Indiana Statutes

§ 26-1-8.1-105 — Notice of adverse claim

Indiana § 26-1-8.1-105

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 8.1Investment Securities

This text of Indiana § 26-1-8.1-105 (Notice of adverse claim) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-8.1-105 (2026).

Text

(a)A person has notice of an adverse claim if:

(1)the person knows of the adverse claim;

(2)the person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim; or

(3)the person has a duty, imposed by statute or regulation, to investigate whether an adverse claim exists, and the investigation so required would establish the existence of the adverse claim.

(b)Having knowledge that a financial asset or interest therein is or has been transferred by a representative imposes no duty of inquiry into the rightfulness of a transaction and is not notice of an adverse claim. However, a person who knows that a representative has transferred a financia

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(a) A person has notice of an adverse
claim if:
(1) the person knows of the adverse claim;
(2) the person is aware of facts sufficient to indicate that there is
a significant probability that the adverse claim exists and
deliberately avoids information that would establish the existence
of the adverse claim; or
(3) the person has a duty, imposed by statute or regulation, to
investigate whether an adverse claim exists, and the investigation
so required would establish the existence of the adverse claim.
(b) Having knowledge that a financial asset or interest therein is or
has been transferred by a representative imposes no duty of inquiry into
the rightfulness of a transaction and is not notice of an adverse claim.
However, a person who knows that a representative has transferred a
financial asset or interest therein in a transaction that is, or whose
proceeds are being used, for the individual benefit of the representative
or otherwise in breach of duty has notice of an adverse claim.
(c) An act or event that creates a right to immediate performance of
the principal obligation represented by a security certificate or sets a
date on or after which the certificate is to be presented or surrendered
for redemption or exchange does not itself constitute notice of an
adverse claim except in the case of a transfer more than:
(1) one (1) year after a date set for presentment or surrender for
redemption or exchange; or
(2) six (6) months after a date set for payment of money against
presentation or surrender of the certificate, if money was available
for payment on that date.
(d) A purchaser of a certificated security has notice of an adverse
claim if the security certificate:
(1) whether in bearer or registered form, has been endorsed "for
collection" or "for surrender" or for some other purpose not
involving transfer; or
(2) is in bearer form and has on it an unambiguous statement that
it is the property of a person other than the transferor, but the
mere writing of a name on the certificate is not such a statement.
(e) Filing of a financing statement under IC 26-1-9.1 is not notice
of an adverse claim to a financial asset.