30-8-125. 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;
(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: En. Sec. 35, 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