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:
(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; or
(2) an employee of the issuer, or of any of the persons listed in paragraph (1), entrusted with responsible handling of the security certificate.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 8 - Investment Securities
§ 4-8-202. Issuer's responsibility and defenses — Notice of defect or defense
§ 4-8-203. Staleness as notice of defect or defense
§ 4-8-204. Effect of issuer's restriction on transfer
§ 4-8-205. Effect of unauthorized signature on security certificate
§ 4-8-206. Completion or alteration of security certificate
§ 4-8-207. Rights and duties of issuer with respect to registered owners
§ 4-8-208. Effect of signature of authenticating trustee, registrar, or transfer agent