California Commercial Code 8405 – (a) If an owner of a certificated security, whether in …
(a) If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed, or wrongfully taken, the issuer shall issue a new certificate if the owner does all of the following:
(1) So requests before the issuer has notice that the certificate has been acquired by a protected purchaser.
Terms Used In California Commercial Code 8405
- Bearer: means a person in possession of a negotiable instrument, document of title, or certificated security that is payable to bearer or endorsed in blank. See California Commercial Code 1201
- 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
(2) Files with the issuer a sufficient indemnity bond.
(3) Satisfies other reasonable requirements imposed by the issuer.
(b) If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer unless an overissue would result. In that case, the issuer’s liability is governed by Section 8210. In addition to any rights on the indemnity bond, an issuer may recover the new certificate from a person to whom it was issued or any person taking under that person, except a protected purchaser.
(Repealed and added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)