A securities intermediary that has transferred a financial asset in accordance with 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 Maryland Statutes
Title 8 - Investment Securities
Subtitle 1 - Short Title and General Matters
Section 8-104 - Acquisition of Security or Financial Asset or Interest Therein
Section 8-105 - Notice of Adverse Claim
Section 8-107 - Whether Indorsement, Instruction, or Entitlement Order Is Effective
Section 8-108 - Warranties in Direct Holding
Section 8-109 - Warranties in Indirect Holding
Section 8-110 - Applicability; Choice of Law
Section 8-111 - Clearing Corporation Rules
Section 8-112 - Creditor's Legal Process
Section 8-113 - Statute of Frauds Inapplicable
Section 8-114 - Evidentiary Rules Concerning Certificated Securities
Section 8-115 - Securities Intermediary and Others Not Liable to Adverse Claimant
Section 8-116 - Securities Intermediary as Purchaser for Value