Sec. 110. (a) The local law of the issuer's jurisdiction, as specified in subsection (d), governs:
(1) the validity of a security;
(2) the rights and duties of the issuer with respect to registration of transfer;
(3) the effectiveness of registration of transfer by the issuer;
(4) whether the issuer owes any duties to an adverse claimant to a security; and
(5) whether an adverse claim can be asserted against a person to whom transfer of a certificated or uncertificated security is registered or a person who obtains control of an uncertificated security.
(b) The local law of the securities intermediary's jurisdiction, as specified in subsection (e), governs:
(1) acquisition of a security entitlement from the securities intermediary;
(2) the rights and duties of the securities intermediary and entitlement holder arising out of a security entitlement;
(3) whether the securities intermediary owes any duties to an adverse claimant to a security entitlement; and
(4) whether an adverse claim can be asserted against a person who acquires a security entitlement from the securities intermediary or a person who purchases a security entitlement or interest therein from an entitlement holder.
(c) The local law of the jurisdiction in which a security certificate is located at the time of delivery governs whether an adverse claim can be asserted against a person to whom the security certificate is delivered.
(d) "Issuer's jurisdiction" means the jurisdiction under which the issuer of the security is organized or, if permitted by the law of that jurisdiction, the law of another jurisdiction specified by the issuer. An issuer organized under the law of this state may specify the law of another jurisdiction as the law governing the matters specified in subsection (a)(2) through (a)(5).
(e) The following rules determine a "securities intermediary's jurisdiction" for purposes of this section:
(1) If an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that a particular jurisdiction is the securities intermediary's jurisdiction for purposes of IC 26-1-8.1-101 through IC 26-1-8.1-116, that jurisdiction is the securities intermediary's jurisdiction.
(2) If subdivision (1) does not apply, and an agreement between the securities intermediary and its entitlement holder expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the securities intermediary's jurisdiction.
(3) If neither subdivision (1) nor subdivision (2) applies, and an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that the securities account is maintained at an office in a particular jurisdiction, that jurisdiction is the securities intermediary's jurisdiction.
(4) If none of the preceding subdivisions apply, the securities intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the entitlement holder's account is located.
(5) If none of the preceding subdivisions apply, the securities intermediary's jurisdiction is the jurisdiction in which the chief executive office of the securities intermediary is located.
(f) A securities intermediary's jurisdiction is not determined by the physical location of certificates representing financial assets, or by the jurisdiction in which is organized the issuer of the financial asset with respect to which an entitlement holder has a security entitlement, or by the location of facilities for data processing or other record keeping concerning the account.
As added by P.L.247-1995, SEC.10. Amended by P.L.57-2000, SEC.41.
Structure Indiana Code
Article 1. Uniform Commercial Code
Chapter 8.1. Investment Securities
26-1-8.1-0.1. Effect of Enactment of Chapter
26-1-8.1-0.3. Perfection of Certain Security Interests; Continuation of Perfection
26-1-8.1-102. Definitions; Rules of Construction
26-1-8.1-103. Classification as Security or Financial Asset
26-1-8.1-104. Acquisition of a Security or Financial Asset
26-1-8.1-105. Notice of Adverse Claim
26-1-8.1-106. Control of Securities
26-1-8.1-107. Effectiveness of Endorsement, Instruction, or Entitlement Order
26-1-8.1-108. Warranties Upon Purchase or Transfer of Security
26-1-8.1-109. Warranties Made by and to a Securities Intermediary
26-1-8.1-110. Applicability of Local Law; Determination of Jurisdiction
26-1-8.1-111. Applicability of Rules Adopted by Clearing Corporations
26-1-8.1-112. Creditor Access to Debtor's Interest in a Security
26-1-8.1-113. Enforceability of Contracts for Sale or Purchase of a Security
26-1-8.1-114. Special Rules in Actions Against Issuers of a Certificated Security
26-1-8.1-115. Liability of Securities Intermediary, Broker, or Other Agent or Bailee
26-1-8.1-116. Determination of Securities Intermediary as Purchaser for Value
26-1-8.1-201. "Issuer" Defined
26-1-8.1-202. Terms of Security; Rules on Validity; Issuer's Defenses; Cancellation of Contracts
26-1-8.1-203. Notice of Defects
26-1-8.1-204. Restrictions on Transfer
26-1-8.1-205. Effect of Unauthorized Signature or Certificate
26-1-8.1-206. Enforceability of Incomplete or Incorrect Certificate
26-1-8.1-208. Warranties by Security Certificate Authenticating Signatory
26-1-8.1-210. Overissue of Security; Refund in the Event of Unavailability of Security
26-1-8.1-301. Delivery of Security
26-1-8.1-302. Rights Acquired by Purchaser
26-1-8.1-303. "Protected Purchaser" Defined; Acquisition of Interest Free of Adverse Claims
26-1-8.1-304. Endorsement of Securities
26-1-8.1-305. Incomplete Instructions; Obligations Imposed on Person Initiating Instructions
26-1-8.1-306. Warranties by Guarantor
26-1-8.1-307. Duties of Transferor of Security
26-1-8.1-401. Issuer's Duty to Register Transfer
26-1-8.1-402. Issuer's Right to Assurances
26-1-8.1-403. Demand That Transfer Not Be Registered; Notice; Contents; Liability
26-1-8.1-404. Issuer Liability for Wrongful Registration of Transfer
26-1-8.1-405. Issuance of New Certificates; Protected Purchasers
26-1-8.1-406. Failure to Notify Issuer of Lost, Destroyed, or Wrongfully Taken Certificates
26-1-8.1-407. Obligations of Agents Acting on Behalf of Issuer
26-1-8.1-501. Acquisition of Security Entitlements
26-1-8.1-502. Adverse Claims Against Person Holding a Security Entitlement
26-1-8.1-504. Maintenance of Financial Assets by Securities Intermediary; Exempted Entity
26-1-8.1-505. Duty of Securities Intermediary to Obtain and Pay Distributions on Financial Assets
26-1-8.1-506. Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder
26-1-8.1-508. Duty of Securities Intermediary to Act at Direction of Entitlement Holder
26-1-8.1-509. Standards for Performance of Duties by Securities Intermediary
26-1-8.1-510. Purchaser for Value of Financial Asset or Security Entitlement; Adverse Claims