A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:
(1) took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or
(2) acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or
(3) in the case of a security certificate that has been stolen, acted with notice of the adverse claim.
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.