Effective: January 1, 1998
Latest Legislation: House Bill 170 - 122nd General Assembly
(A) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. A securities intermediary satisfies the duty if:
(1) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.
(B) If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it, and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer. If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.
Structure Ohio Revised Code
Title 13 | Commercial Transactions
Chapter 1308 | Investment Securities
Section 1308.01 | Definitions - Ucc 8-102.
Section 1308.03 | Overissue Defined - Effect - Ucc 8-210.
Section 1308.04 | Evidentiary Rules Concerning Certificate Securities - Ucc 8-114.
Section 1308.05 | Applicability - Choice of Law - Ucc 8-110.
Section 1308.06 | Clearing Corporation Rules - Ucc 8-111.
Section 1308.07 | Statute of Frauds Inapplicable - Ucc 8-113.
Section 1308.08 | Issuer - Ucc 8-201.
Section 1308.09 | Issuer's Responsibility and Defenses - Notice of Defect or Defense - Ucc 8-202.
Section 1308.10 | Staleness as Notice of Defect or Defense - Ucc 8-203.
Section 1308.12 | Effect of Unauthorized Signature on Security Certificate - Ucc 8-205.
Section 1308.13 | Completion or Alteration of Security Certificate - Ucc 8-206.
Section 1308.14 | Rights and Duties of Issuer With Respect to Registered Owners - Ucc 8-207.
Section 1308.16 | Rights of Purchaser - Ucc 8-302.
Section 1308.17 | Protected Purchaser - Ucc 8-303.
Section 1308.18 | Acquisition of Security or Financial Asset or Interest Therein - Ucc 8-104.
Section 1308.19 | Notice of Adverse Claim - Ucc 8-105.
Section 1308.20 | Warranties in Direct Holding - Ucc 8-108.
Section 1308.21 | Warranties in Indirect Holding - Ucc 8-109.
Section 1308.22 | Indorsement - Ucc 8-304.
Section 1308.23 | Whether Indorsement, Instruction, or Entitlement Order Is Effective - Ucc 8-107.
Section 1308.24 | Control - Ucc 8-106.
Section 1308.25 | Instruction - Ucc 8-305.
Section 1308.26 | Effect of Guaranteeing Signature, Indorsement, or Instruction - Ucc 8-306.
Section 1308.27 | Delivery - Ucc 8-301.
Section 1308.29 | Fulfilling Duty to Transfer.
Section 1308.30 | Wrongful Transfer of Security.
Section 1308.31 | Purchaser's Right to Requisites for Registration of Transfer - Ucc 8-307.
Section 1308.32 | Creditor's Legal Process - Ucc 8-112.
Section 1308.37 | Duty of Issuer to Register Transfer - Ucc 8-401.
Section 1308.38 | Assurance That Indorsement or Instruction Is Effective - Ucc 8-402.
Section 1308.39 | Demand That Issuer Not Register Transfer - Ucc 8-403.
Section 1308.40 | Wrongful Registration - Ucc 8-404.
Section 1308.42 | Authenticating Trustee, Transfer Agent, and Registrar - Ucc 8-407.
Section 1308.52 | Assertion of Adverse Claim Against Entitlement Holder - Ucc 8-502.
Section 1308.54 | Duty of Securities Intermediary to Maintain Financial Asset - Ucc 8-504.
Section 1308.57 | Duty of Securities Intermediary to Comply With Entitlement Holder - Ucc 8-507.
Section 1308.60 | Rights of Purchaser of Security Entitlement From Entitlement Holder - Ucc 8-510.
Section 1308.61 | Priority Among Security Interests and Entitlement Holders - Ucc 8-511.