408.404

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408.404 Wrongful registration.

408.404(1)(a)

(a) Pursuant to an ineffective endorsement or instruction;

408.404(1)(d)

(d) By an issuer acting in collusion with the wrongdoer.

408.404(1)

(1) Except as otherwise provided in § 408.406, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered:

408.404(1)(b)

(b) After a demand that the issuer not register transfer became effective under § 408.403 (1) and the issuer did not comply with § 408.403 (2);

408.404(1)(c)

(c) After the issuer had been served with an injunction, restraining order, or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the injunction, restraining order or other legal process; or

408.404(2)

(2) An issuer that is liable for wrongful registration of transfer under sub. (1) on demand shall provide the person entitled to the security with a like certificated or uncertificated security, and any payments or distributions that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer’s liability to provide the person with a like security is governed by § 408.210.

408.404(3)

(3) Except as otherwise provided in sub. (1) or in a law relating to the collection of taxes, an issuer is not liable to an owner or other person suffering loss as a result of the registration of a transfer of a security if registration was made pursuant to an effective endorsement or instruction.