§ 8109. Warranties in indirect holding.
(a) Warranties of person originating entitlement order to securities intermediary.--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) Warranties of person delivering security certificate or originating instruction.--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 8108(a) or (b) (relating to warranties in direct holding).
(c) Warranties of securities intermediary.--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 8108(a) or (b).
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 81 - Short Title and General Matters
Section 8101 - Short title of division
Section 8104 - Acquisition of security or financial asset or interest therein
Section 8105 - Notice of adverse claim
Section 8107 - Whether indorsement, instruction or entitlement order is effective
Section 8108 - Warranties in direct holding
Section 8109 - Warranties in indirect holding
Section 8110 - Applicability; choice of law
Section 8111 - Clearing corporation rules
Section 8112 - Creditor's legal process
Section 8113 - Statute of frauds inapplicable
Section 8114 - Evidentiary rules concerning certificated securities
Section 8115 - Securities intermediary and others not liable to adverse claimant
Section 8116 - Securities intermediary as purchaser for value