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 Delaware Code
Article 8. Investment Securities
Part 1. Short Title and General Matters
§ 8-104. Acquisition of security or financial asset or interest therein.
§ 8-105. Notice of adverse claim.
§ 8-107. Whether endorsement, instruction, or entitlement order is effective.
§ 8-108. Warranties in direct holding.
§ 8-109. Warranties in indirect holding.
§ 8-110. Applicability; choice of law.
§ 8-111. Clearing corporation rules.
§ 8-112. Creditor's legal process.
§ 8-113. Statute of frauds inapplicable.
§ 8-114. Evidentiary rules concerning certificated securities.
§ 8-115. Securities intermediary and others not liable to adverse claimant.