Kentucky Statutes 355.8-401 – Duty of issuer to register transfer
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(1) If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security, the issuer shall register the transfer as requested if:
(a) Under the terms of the security the person seeking registration of transfer is eligible to have the security registered in its name;
(b) The indorsement or instruction is made by the appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;
(c) Reasonable assurance is given that the indorsement or instruction is genuine and authorized (KRS § 355.8-402);
(d) Any applicable law relating to the collection of taxes has been complied with; (e) The transfer does not violate any restriction on transfer imposed by the issuer
in accordance with KRS § 355.8-204;
(f) A demand that the issuer not register transfer has not become effective under KRS § 355.8-403, or the issuer has complied with KRS § 355.8-403(2) but no legal process or indemnity bond is obtained as provided in KRS § 355.8-403(4); and
(g) The transfer is in fact rightful or is to a protected purchaser.
(2) If an issuer is under a duty to register a transfer of a security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person’s principal for loss resulting from unreasonable delay in registration or failure or refusal to register the transfer.
Effective: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 147, effective January 1,
1997. — Amended 1986 Ky. Acts ch. 118, sec. 46, effective July 1, 1987. — Created
1958 Ky. Acts ch. 77, sec. 8-401, effective July 1, 1960.
(a) Under the terms of the security the person seeking registration of transfer is eligible to have the security registered in its name;
Terms Used In Kentucky Statutes 355.8-401
- Violate: includes failure to comply with. See Kentucky Statutes 446.010
(b) The indorsement or instruction is made by the appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;
(c) Reasonable assurance is given that the indorsement or instruction is genuine and authorized (KRS § 355.8-402);
(d) Any applicable law relating to the collection of taxes has been complied with; (e) The transfer does not violate any restriction on transfer imposed by the issuer
in accordance with KRS § 355.8-204;
(f) A demand that the issuer not register transfer has not become effective under KRS § 355.8-403, or the issuer has complied with KRS § 355.8-403(2) but no legal process or indemnity bond is obtained as provided in KRS § 355.8-403(4); and
(g) The transfer is in fact rightful or is to a protected purchaser.
(2) If an issuer is under a duty to register a transfer of a security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person’s principal for loss resulting from unreasonable delay in registration or failure or refusal to register the transfer.
Effective: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 147, effective January 1,
1997. — Amended 1986 Ky. Acts ch. 118, sec. 46, effective July 1, 1987. — Created
1958 Ky. Acts ch. 77, sec. 8-401, effective July 1, 1960.