California Commercial Code 8205 – An unauthorized signature placed on a security certificate before or …
An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signing has been done by one of the following:
(1) An authenticating trustee, registrar, transfer agent, or other person entrusted by the issuer with the signing of the security certificate or of similar security certificates, or the immediate preparation for signing of any of them.
Terms Used In California Commercial Code 8205
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See California Commercial Code 1201
- Purchaser: means a person that takes by purchase. See California Commercial Code 1201
- Trustee: A person or institution holding and administering property in trust.
- Unauthorized signature: means a signature made without actual, implied, or apparent authority. See California Commercial Code 1201
(2) An employee of the issuer, or of any of the persons listed in paragraph (1), entrusted with responsible handling of the security certificate.
(Repealed and added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)