A person acting as authenticating trustee, transfer agent, registrar, or other agent for an
issuer in the registration of a transfer of its securities, in the issue of new security certificates or
uncertificated securities, or in the cancellation of surrendered security certificates has the same
obligation to the holder or owner of a certificated or uncertificated security with regard to the
particular functions performed as the issuer has in regard to those functions.
41-08-41. (8-501) Securities account - Acquisition of security entitlement from
securities intermediary.
1."Securities account" means an account to which a financial asset is or may be credited
in accordance with an agreement under which the person maintaining the account
undertakes to treat the person for whom the account
Free access — add to your briefcase to read the full text and ask questions with AI
A person acting as authenticating trustee, transfer agent, registrar, or other agent for an
issuer in the registration of a transfer of its securities, in the issue of new security certificates or
uncertificated securities, or in the cancellation of surrendered security certificates has the same
obligation to the holder or owner of a certificated or uncertificated security with regard to the
particular functions performed as the issuer has in regard to those functions.
41-08-41. (8-501) Securities account - Acquisition of security entitlement from
securities intermediary.
1. "Securities account" means an account to which a financial asset is or may be credited
in accordance with an agreement under which the person maintaining the account
undertakes to treat the person for whom the account is maintained as entitled to
exercise the rights that comprise the financial asset.
2. Except as otherwise provided in subsections 4 and 5, a person acquires a security
entitlement if a securities intermediary:
a. Indicates by book entry that a financial asset has been credited to the person's
securities account;
b. Receives a financial asset from the person or acquires a financial asset for the
person and, in either case, accepts it for credit to the person's securities account;
or
c. Becomes obligated under other law, regulation, or rule to credit a financial asset
to the person's securities account.
3. If a condition of subsection 2 has been met, a person has a security entitlement even
though the securities intermediary does not itself hold the financial asset.
4. If a securities intermediary holds a financial asset for another person, and the financial
asset is registered in the name of, payable to the order of, or specially endorsed to the
other person, and has not been endorsed to the securities intermediary or in blank, the
other person is treated as holding the financial asset directly rather than as having a
security entitlement with respect to the financial asset.
5. Issuance of a security is not establishment of a security entitlement.