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.
1996, c. 216.
Structure Code of Virginia
Title 8.8A - Commercial Code - Investment Securities
§ 8.8A-104. Acquisition of security or financial asset or interest therein
§ 8.8A-105. Notice of adverse claim
§ 8.8A-107. Whether endorsement, instruction or entitlement order is effective
§ 8.8A-108. Warranties in direct holding
§ 8.8A-109. Warranties in indirect holding
§ 8.8A-110. Applicability; choice of law
§ 8.8A-111. Clearing corporation rules
§ 8.8A-112. Creditor's legal process
§ 8.8A-113. Statute of frauds inapplicable
§ 8.8A-114. Evidentiary rules concerning certificated securities
§ 8.8A-115. Securities intermediary and others not liable to adverse claimant