(a) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:
(1) the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and
(2) there is no adverse claim to the security entitlement.
(b) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in Section 7-8-108(a) or (b).
(c) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in Section 7-8-108(a) or (b).
Structure Code of Alabama
Article 8 - Investment Securities.
Part 1 - Short Title and General Matters.
Section 7-8-101 - Short Title.
Section 7-8-102 - Definitions.
Section 7-8-104 - Acquisition of Security or Financial Asset or Interest Therein.
Section 7-8-105 - Notice of Adverse Claim.
Section 7-8-107 - Whether Indorsement, Instruction, or Entitlement Order Is Effective.
Section 7-8-108 - Warranties in Direct Holding.
Section 7-8-109 - Warranties in Indirect Holding.
Section 7-8-110 - Applicability; Choice of Law.
Section 7-8-111 - Clearing Corporation Rules.
Section 7-8-112 - Creditor's Legal Process.
Section 7-8-113 - Statute of Frauds Inapplicable.
Section 7-8-114 - Evidentiary Rules Concerning Certificated Securities.
Section 7-8-115 - Securities Intermediary and Others Not Liable to Adverse Claimant.
Section 7-8-116 - Securities Intermediary as Purchaser for Value.