Indiana § 26-1-8.1-306 Warranties by guarantor

Indiana Statutes

§ 26-1-8.1-306 — Warranties by guarantor

Indiana § 26-1-8.1-306

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 8.1Investment Securities

This text of Indiana § 26-1-8.1-306 (Warranties by guarantor) 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 § 26-1-8.1-306 (2026).

Text

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

(1)the signature was genuine;

(2)the signer was an appropriate person to endorse, 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 whi

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(a) A person who guarantees a signature
of an endorser of a security certificate warrants that at the time of
signing:
(1) the signature was genuine;
(2) the signer was an appropriate person to endorse, 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) 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) or a special guarantor
under subsection (c) does not otherwise warrant the rightfulness of the
transfer.
(e) A person who guarantees an endorsement of a security certificate
makes the warranties of a signature guarantor under subsection (a) 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) 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 endorsement, 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 endorser
or originator of an instruction whose signature, endorsement, 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.