TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 8

INVESTMENT SECURITIES

PART 1.

SHORT TITLE AND GENERAL MATTERS

28-8-115.  Securities intermediary and others not liable to adverse claimant. A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:

(1)  Took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order or other legal process; or

(2)  Acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or

(3)  In the case of a security certificate that has been stolen, acted with notice of the adverse claim.

History:

[28-8-115, added 1995, ch. 272, sec. 2, p. 885.]