A. Delivery of a certificated security to a purchaser occurs when:

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Terms Used In Arizona Laws 47-8301

  • Indorsement: means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate document for the purpose of assigning, transferring or redeeming the security or granting a power to assign, transfer or redeem it. See Arizona Laws 47-8102
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Securities intermediary: means :

    (a) A clearing corporation; or

    (b) A person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity. See Arizona Laws 47-8102

  • Security: except as otherwise provided in section 47-8103, means an obligation of an issuer or a share, participation or other interest in an issuer or in property or an enterprise of an issuer:

    (a) Which is represented by a security certificate in bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;

    (b) Which is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests or obligations; and

    (c) Which:

    (i) Is, or is of a type, dealt in or traded on securities exchanges or securities markets; or

    (ii) Is a medium for investment and by its terms expressly provides that it is a security governed by this chapter. See Arizona Laws 47-8102

  • Security certificate: means a certificate representing a security. See Arizona Laws 47-8102
  • Uncertificated security: means a security that is not represented by a certificate. See Arizona Laws 47-8102

1. The purchaser acquires possession of the security certificate;

2. Another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, having previously acquired possession of the certificate, acknowledges that it holds for the purchaser; or

3. A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and is registered in the name of the purchaser, payable to the order of the purchaser or specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities intermediary or in blank.

B. Delivery of an uncertificated security to a purchaser occurs when:

1. The issuer registers the purchaser as the registered owner, upon original issue or registration of transfer; or

2. Another person, other than a securities intermediary, either becomes the registered owner of the uncertificated security on behalf of the purchaser or, having previously become the registered owner, acknowledges that it holds for the purchaser.