30-8-119. Warranties in indirect holding. (1) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:
(a) the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and
(b) there is no adverse claim to the security entitlement.
(2) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in 30-8-118(1) or (2).
(3) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in 30-8-118(1) or (2).
History: En. Sec. 29, Ch. 536, L. 1997.
Structure Montana Code Annotated
Chapter 8. Uniform Commercial Code Investment Securities
Part 1. Short Title and General Matters
30-8-109. through 30-8-111 reserved
30-8-114. Acquisition of security or financial asset or interest therein
30-8-115. Notice of adverse claim
30-8-117. Whether indorsement, instruction, or entitlement order is effective
30-8-118. Warranties in direct holding
30-8-119. Warranties in indirect holding
30-8-120. Applicability -- choice of law
30-8-121. Clearing corporation rules
30-8-122. Creditor's legal process
30-8-123. Statute of frauds inapplicable
30-8-124. Evidentiary rules concerning certificated securities
30-8-125. Securities intermediary and others not liable to adverse claimant