2007 Minnesota Statutes

336.8-109 WARRANTIES IN INDIRECT HOLDING.
(a) A person who originates an entitlement order to a securities intermediary warrants to the
securities intermediary that:
(1) the entitlement order is made by an appropriate person, or if the entitlement order is by an
agent, the agent has actual authority to act on behalf of the appropriate person; and
(2) there is no adverse claim to the security entitlement.
(b) A person who delivers a security certificate to a securities intermediary for credit to a
securities account or originates an instruction with respect to an uncertificated security directing
that the uncertificated security be credited to a securities account makes to the securities
intermediary the warranties specified in section 336.8-108(a) or (b).
(c) If a securities intermediary delivers a security certificate to its entitlement holder or
causes its entitlement holder to be registered as the owner of an uncertificated security, the
securities intermediary makes to the entitlement holder the warranties specified in section
336.8-108(a) or (b).
History: 1995 c 194 art 1 s 9