(a) A person who originates an entitlement order to a securities
intermediary warrants to the securities intermediary that:
(1) 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
(2) there is no adverse claim to the security entitlement.
(b) 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 Section 8-108(a)
or (b).
(c) 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 Section
8--108(a) or (b).
Structure New York Laws
Article 8 - Investment Securities
Part 1 - Short Title and General Matters
8-104 - Acquistion of Security or Financial Assest or Interest Therein.
8-105 - Notice of Adverse Claim.
8-107 - Whether Indorsement, Instruction, or Entitlement Order Is Effective.
8-108 - Warranties in Direct Holding.
8-109 - Warranties in Indirect Holding.
8-110 - Applicability; Choice of Law.
8-111 - Clearing Corporation Rules.
8-112 - Creditor's Legal Process.
8-113 - Statute of Frauds Generally Inapplicable.
8-114 - Evidentiary Rules Concerning Certificated Securitites.
8-115 - Securities Intermediary and Others Not Liable to Adverse Claimant.