Indiana § 26-1-8.1-107 Effectiveness of endorsement, instruction, or entitlement order

Indiana Statutes

§ 26-1-8.1-107 — Effectiveness of endorsement, instruction, or entitlement order

Indiana § 26-1-8.1-107

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 8.1Investment Securities

This text of Indiana § 26-1-8.1-107 (Effectiveness of endorsement, instruction, or entitlement order) 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 § 26-1-8.1-107 (2026).

Text

(a)"Appropriate person" means:

(1)with respect to an endorsement, the person specified by a security certificate or by an effective special endorsement to be entitled to the security;

(2)with respect to an instruction, the registered owner of an uncertificated security;

(3)with respect to an entitlement order, the entitlement holder;

(4)if the person designated in subdivision (1), (2), or (3) 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

(5)if the person designated in subdivision (1), (2), or (3) 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.

(b)A

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(a) "Appropriate person" means:
(1) with respect to an endorsement, the person specified by a
security certificate or by an effective special endorsement to be
entitled to the security;
(2) with respect to an instruction, the registered owner of an
uncertificated security;
(3) with respect to an entitlement order, the entitlement holder;
(4) if the person designated in subdivision (1), (2), or (3) 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
(5) if the person designated in subdivision (1), (2), or (3) 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.
(b) An endorsement, instruction, or entitlement order is effective if:
(1) it is made by the appropriate person;
(2) it is made by a person who has power under the law of agency
to transfer the security or financial asset on behalf of the
appropriate person, including, in the case of an instruction or
entitlement order, a person who has control under IC 26-1-8.1-106(c)(2) or IC 26-1-8.1-106(d)(2); or
(3) the appropriate person has ratified it or is otherwise precluded
from asserting its ineffectiveness.
(c) An endorsement, instruction, or entitlement order made by a
representative is effective even if:
(1) 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
(2) the representative's action in making the endorsement,
instruction, or entitlement order or using the proceeds of the
transaction is otherwise a breach of duty.
(d) If a security is registered in the name of or specially endorsed 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
endorsement, instruction, or entitlement order made by the person is
effective even though the person is no longer serving in the described
capacity.
(e) Effectiveness of an endorsement, instruction, or entitlement
order is determined as of the date the endorsement, instruction, or
entitlement order is made, and an endorsement, instruction, or
entitlement order does not become ineffective by reason of any later
change of circumstances.