Illinois Compiled Statutes 810 ILCS 5/8-402 – Assurance that indorsement or instruction is effective
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(a) An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized:
(1) in all cases, a guaranty of the signature of the
(1) in all cases, a guaranty of the signature of the
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person making an indorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;
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(2) if the indorsement is made or the instruction is
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originated by an agent, appropriate assurance of actual authority to sign;
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(3) if the indorsement is made or the instruction is
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originated by a fiduciary pursuant to Section 8-107(a)(4) or (a)(5), appropriate evidence of appointment or incumbency;
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(4) if there is more than one fiduciary, reasonable
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assurance that all who are required to sign have done so; and
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(5) if the indorsement is made or the instruction is
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originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.
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(b) An issuer may elect to require reasonable assurance beyond that specified in this Section.
(c) In this Section:
(1) “Guaranty of the signature” means a guaranty
Terms Used In Illinois Compiled Statutes 810 ILCS 5/8-402
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiduciary: A trustee, executor, or administrator.
(c) In this Section:
(1) “Guaranty of the signature” means a guaranty
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signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.
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(2) “Appropriate evidence of appointment or
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incumbency” means:
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(i) in the case of a fiduciary appointed or
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qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within 60 days before the date of presentation for transfer; or
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(ii) in any other case, a copy of a document
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showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence the issuer reasonably considered appropriate.
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