New Jersey Statutes

§ 12A:8-109 — Warranties in Indirect Holding.

New Jersey·Title 12A COMMERCIAL TRANSACTIONS

a. A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:

(1)the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and (2) there is no adverse claim to the security entitlement. b. A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in subsection a. or b. of 12A:8-108. c. If a securities intermediary delivers a security certificate to its en

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