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554.8405 Lost, destroyed, and stolen certificated securities.

1. If a certificated security has been lost, apparently destroyed, or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, the owner is precluded from asserting against the issuer any claim for registering the transfer under section 554.8404 or any claim to a new security under this section.

2. If the owner of a security claims that a certificated security has been lost, destroyed, or wrongfully taken, the issuer shall issue a new certificated security or, at the option of the issuer, an equivalent uncertificated security in place of the original security if the owner:

a. so requests before the issuer has notice that the security has been acquired by a bona fide purchaser;

b. files with the issuer a sufficient indemnity bond; and

c. satisfies any other reasonable requirements imposed by the issuer.

3. If, after the issue of a new certificated or uncertificated security, a bona fide purchaser of the original certificated security presents it for registration of transfer, the issuer shall register the transfer unless registration would result in overissue, in which event the issuer's liability is governed by section 554.8104. In addition to any rights on the indemnity bond, the issuer may recover the new certificated security from the person to whom it was issued or any person taking under the person to whom it was issued except a bona fide purchaser or may cancel the uncertificated security unless a bona fide purchaser or any person taking under a bona fide purchaser is then the registered owner or registered pledgee thereof.

Section History: Early form

[S13, § 3060-a199, -a200; C24, 27, 31, 35, 39, § 9659, 9660; C46, § 541.199, 541.200; C50, 54, 58, 62, § 493A.17, 541.199; C66, 71, 73, 75, 77, 79, 81, § 554.8405]

Section History: Recent form

89 Acts, ch 113, § 41

Internal References

Referred to in § 554.8404

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