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554.8205 Effect of unauthorized signature on certificated security or initial transaction statement.

An unauthorized signature placed on a certificated security prior to or in the course of issue or placed on an initial transaction statement is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security or a purchaser for value of an uncertificated security to whom such initial transaction statement has been sent, if the purchaser is without notice of the lack of authority and if the signing has been done by:

a. an authenticating trustee, registrar, transfer agent or other person entrusted by the issuer with the signing of the security, of similar securities, or of initial transaction statements or the immediate preparation for signing of any of them; or

b. an employee of the issuer, or of any of the foregoing, entrusted with responsible handling of the security or initial transaction statement.

Section History: Early form

[S13, § 3060-a23; C24, 27, 31, 35, 39, § 9483; C46, 50, 54, 58, 62, § 541.23; C66, 71, 73, 75, 77, 79, 81, § 554.8205]

Section History: Recent form

89 Acts, ch 113, § 12

Internal References

Referred to in § 554.8202

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