(a)  A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that:

(1)  the certificate is genuine;

(2)  the person’s own participation in the issue of the security is within the person’s capacity and within the scope of the authority received by the person from the issuer; and

(3)  the person has reasonable grounds to believe that the certificated security is in the form and within the amount the issuer is authorized to issue.

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Terms Used In Rhode Island General Laws 6A-8-208

  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • Trustee: A person or institution holding and administering property in trust.

(b)  Unless otherwise agreed, a person signing under subsection (a) does not assume responsibility for the validity of the security in other respects.

History of Section.
P.L. 2000, ch. 182, § 5; P.L. 2000, ch. 420, § 5.