§ 6A-8-109. Warranties in indirect holding.
(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 § 6A-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 § 6A-8-108(a) or (b).
History of Section.P.L. 2000, ch. 182, § 5; P.L. 2000, ch. 420, § 5.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-8 - Investment Securities
Part 1 - Short Title and General Matters
Section 6A-8-101. - Short title.
Section 6A-8-102. - Definitions.
Section 6A-8-104. - Acquisition of security or financial asset or interest therein.
Section 6A-8-105. - Notice of adverse claim.
Section 6A-8-107. - Whether indorsement, instruction, or entitlement order is effective.
Section 6A-8-108. - Warranties in direct holding.
Section 6A-8-109. - Warranties in indirect holding.
Section 6A-8-110. - Applicability — Choice of law.
Section 6A-8-111. - Clearing corporation rules.
Section 6A-8-112. - Creditor’s legal process.
Section 6A-8-113. - Statute of frauds inapplicable.
Section 6A-8-114. - Evidentiary rules concerning certificated securities.
Section 6A-8-115. - Securities intermediary and others not liable to adverse claimant.
Section 6A-8-116. - Securities intermediary as purchaser for value.