§ 34.1-8-404 — Wrongful registration

Wyoming § 34.1-8-404

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 8: INVESTMENT SECURITIES

Text

(a) Except as otherwise provided in W.S. 34.1-8-406, an
issuer is liable for wrongful registration of transfer if the
issuer has registered a transfer of a security to a person not
entitled to it, and the transfer was registered:
(i) Pursuant to an ineffective indorsement or
instruction;
(ii) After a demand that the issuer not register
transfer became effective under W.S. 34.1-8-403(a) and the
issuer did not comply with W.S. 34.1-8-403(b);
(iii) After the issuer had been served with an
injunction, restraining order, or other legal process enjoining
it from registering the transfer, issued by a court of competent
jurisdiction, and the issuer had a reasonable opportunity to act
on the injunction, restraining order, or other legal process; or
(iv) By an issuer acting in collusion with the
wrongdoer.
(b) An issuer that is liable for wrongful registration of
transfer under subsection (a) of this section on demand shall
provide the person entitled to the security with a like
certificated or uncertificated security, and any payments or
distributions that the person did not receive as a result of the
wrongful registration. If an overissue would result, the
issuer's liability to provide the person with a like security is
governed by W.S. 34.1-8-210.
(c) Except as otherwise provided in subsection (a) of this
section or in a law relating to the collection of taxes, an
issuer is not liable to an owner or other person suffering loss
as a result of the registration of a transfer of a security if
registration was made pursuant to an effective indorsement or
instruction.