§ 41-08-35 — (8-402) Assurance that endorsement or instruction is effective

1. An issuer may require the following assurance that each necessary endorsement or
each instruction is genuine and authorized:
a. In all cases, a guaranty of the signature of the person making an endorsement or
originating an instruction including, in the case of an instruction, reasonable
assurance of identity;
b. If the endorsement is made or the instruction is originated by an agent,
appropriate assurance of actual authority to sign;
c. If the endorsement is made or the instruction is originated by a fiduciary pursuant
to subdivision d or e of subsection 1 of section 41-08-07, appropriate evidence of
appointment or incumbency;
d. If there is more than one fiduciary, reasonable assurance that all who are
required to sign have done so; and
e. If the endorsement is made or the instruction is originated by a person not
covered by another provision of this subsection, assurance appropriate to the
case corresponding as nearly as may be to the provisions of this subsection.

2. An issuer may elect to require reasonable assurance beyond that specified in this
section.
3. In this section:
a. "Appropriate evidence of appointment or incumbency" means:
(1) In the case of a fiduciary appointed or qualified by a court, a certificate
issued by or under the direction or supervision of the court or an officer
thereof and dated within sixty days before the date of presentation for
transfer; or
(2) In any other case, a copy of a document showing the appointment or a
certificate issued by or on behalf of a person reasonably believed by an
issuer to be responsible or, in the absence of that document or certificate,
other evidence the issuer reasonably considers appropriate.
b. "Guaranty of the signature" means a guaranty signed by or on behalf of a person
reasonably believed by the issuer to be responsible. An issuer may adopt
standards with respect to responsibility if they are not manifestly unreasonable.