28-8-115. SECURITIES INTERMEDIARY AND OTHERS NOT LIABLE TO ADVERSE CLAIMANT. 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.
History:
[28-8-115, added 1995, ch. 272, sec. 2, p. 885.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 8 - INVESTMENT SECURITIES
Part 1 - SHORT TITLE AND GENERAL MATTERS
Section 28-8-101 - SHORT TITLE.
Section 28-8-102 - DEFINITIONS.
Section 28-8-104 - ACQUISITION OF SECURITY OR FINANCIAL ASSET OR INTEREST THEREIN.
Section 28-8-105 - NOTICE OF ADVERSE CLAIM.
Section 28-8-107 - WHETHER INDORSEMENT, INSTRUCTION OR ENTITLEMENT ORDER IS EFFECTIVE.
Section 28-8-108 - WARRANTIES IN DIRECT HOLDING.
Section 28-8-109 - WARRANTIES IN INDIRECT HOLDING.
Section 28-8-110 - APPLICABILITY AND CHOICE OF LAW.
Section 28-8-111 - CLEARING CORPORATION RULES.
Section 28-8-112 - CREDITOR’S LEGAL PROCESS.
Section 28-8-113 - STATUTE OF FRAUDS INAPPLICABLE.
Section 28-8-114 - EVIDENTIARY RULES CONCERNING CERTIFICATED SECURITIES.
Section 28-8-115 - SECURITIES INTERMEDIARY AND OTHERS NOT LIABLE TO ADVERSE CLAIMANT.
Section 28-8-116 - SECURITIES INTERMEDIARY AS PURCHASER FOR VALUE.