Sec. 306. (a) A person who guarantees a signature of an endorser of a security certificate warrants that at the time of signing:
(1) the signature was genuine;
(2) the signer was an appropriate person to endorse, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person; and
(3) the signer had legal capacity to sign.
(b) A person who guarantees a signature of the originator of an instruction warrants that at the time of signing:
(1) the signature was genuine;
(2) the signer was an appropriate person to originate the instruction, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person, if the person specified in the instruction as the registered owner was, in fact, the registered owner, as to which fact the signature guarantor does not make a warranty; and
(3) the signer had legal capacity to sign.
(c) A person who specially guarantees the signature of an originator of an instruction makes the warranties of a signature guarantor under subsection (b) and also warrants that at the time the instruction is presented to the issuer:
(1) the person specified in the instruction as the registered owner of the uncertificated security will be the registered owner; and
(2) the transfer of the uncertificated security requested in the instruction will be registered by the issuer free from all liens, security interests, restrictions, and claims other than those specified in the instruction.
(d) A guarantor under subsections (a) and (b) or a special guarantor under subsection (c) does not otherwise warrant the rightfulness of the transfer.
(e) A person who guarantees an endorsement of a security certificate makes the warranties of a signature guarantor under subsection (a) and also warrants the rightfulness of the transfer in all respects.
(f) A person who guarantees an instruction requesting the transfer of an uncertificated security makes the warranties of a special signature guarantor under subsection (c) and also warrants the rightfulness of the transfer in all respects.
(g) An issuer may not require a special guaranty of signature, a guaranty of endorsement, or a guaranty of instruction as a condition to registration of transfer.
(h) The warranties under this section are made to a person taking or dealing with the security in reliance on the guaranty, and the guarantor is liable to the person for loss resulting from their breach. An endorser or originator of an instruction whose signature, endorsement, or instruction has been guaranteed is liable to a guarantor for any loss suffered by the guarantor as a result of breach of the warranties of the guarantor.
As added by P.L.247-1995, SEC.10.
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