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554.8302 "Bona fide purchaser"---"adverse claim"---title acquired by bona fide purchaser.

1. A "bona fide purchaser" is a purchaser for value in good faith and without notice of any adverse claim:

a. who takes delivery of a certificated security in bearer form or in registered form, issued or endorsed to that purchaser or in blank;

b. to whom the transfer, pledge, or release of an uncertificated security is registered on the books of the issuer; or

c. to whom a security is transferred under the provisions of paragraph "c", "d"(i), or "g" of section 554.8313, subsection 1.

2. "Adverse claim" includes a claim that a transfer was or would be wrongful or that a particular adverse person is the owner of or has an interest in the security.

3. A bona fide purchaser in addition to acquiring the rights of a purchaser (section 554.8301) also acquires interest in the security free of any adverse claim.

4. Notwithstanding section 554.8301, subsection 1, the transferee of a particular certificated security who has been a party to any fraud or illegality affecting the security, or who as a prior holder of that certificated security had notice of an adverse claim, cannot improve the transferee's position by taking from a bona fide purchaser.

Section History: Early form

[S13, § 3060-a52; C24, 27, 31, 35, 39, § 9512; C46, 50, 54, 58, 62, § 541.52; C66, 71, 73, 75, 77, 79, 81, § 554.8302]

Section History: Recent form

89 Acts, ch 113, § 17

Internal References

Referred to in § 554.5114, 554.8102, 554.8301, 554.8320, 554.9309

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