§ 41-08-14 — (8-114) Evidentiary rules concerning certificated securities

The following rules apply in an action on a certificated security against the issuer:
1. Unless specifically denied in the pleadings, each signature on a security certificate or
in a necessary endorsement is admitted.

2. If the effectiveness of a signature is put in issue, the burden of establishing
effectiveness is on the party claiming under the signature, but the signature is
presumed to be genuine or authorized.
3. If signatures on a security certificate are admitted or established, production of the
certificate entitles a holder to recover on it unless the defendant establishes a defense
or a defect going to the validity of the security.
4. If it is shown that a defense or defect exists, the plaintiff has the burden of establishing
that the plaintiff, or some person under whom the plaintiff claims, is a person against
whom the defense or defect cannot be asserted.