North Dakota Code 41-08-07 – (8-107) Whether endorsement, instruction, or entitlement order is effective
1. “Appropriate person” means:
Terms Used In North Dakota Code 41-08-07
- Decedent: A deceased person.
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
a. With respect to an endorsement, the person specified by a security certificate or by an effective special endorsement to be entitled to the security; b. With respect to an instruction, the registered owner of an uncertificated security; c. With respect to an entitlement order, the entitlement holder; d. If the person designated in subdivision a, b, or c is deceased, the designated person’s successor taking under other law or the designated person’s personal representative acting for the estate of the decedent; or
e. If the person designated in subdivision a, b, or c lacks capacity, the designated person’s guardian, conservator, or other similar representative who has power under other law to transfer the security or financial asset.
2. An endorsement, instruction, or entitlement order is effective if:
a. It is made by the appropriate person; b. It is made by a person who has power under the law of agency to transfer the security or financial asset on behalf of the appropriate person, including, in the case of an instruction or entitlement order, a person who has control under subdivision b of subsection 3 or subdivision b of subsection 4 of section 41-08-06; or
c. The appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness.
3. An endorsement, instruction, or entitlement order made by a representative is effective even if:
a. The representative has failed to comply with a controlling instrument or with the law of the state having jurisdiction of the representative relationship, including any law requiring the representative to obtain court approval of the transaction; or
b. The representative’s action in making the endorsement, instruction, or entitlement order or using the proceeds of the transaction is otherwise a breach of duty.
4. If a security is registered in the name of or specially endorsed to a person described as a representative, or if a securities account is maintained in the name of a person described as a representative, an endorsement, instruction, or entitlement order made by the person is effective even though the person is no longer serving in the described capacity.
5. Effectiveness of an endorsement, instruction, or entitlement order is determined as of the date the endorsement, instruction, or entitlement order is made, and an endorsement, instruction, or entitlement order does not become ineffective by reason of any later change of circumstances.