Sec. 42b-7. Appointment by issuer of authenticity agents, transfer agents, registrars and other agents. Establishment of depository system for transfer of registered public obligations.
Sec. 42b-7. Appointment by issuer of authenticity agents, transfer agents, registrars and other agents. Establishment of depository system for transfer of registered public obligations. (a) An issuer or an issuer's official or official body on behalf
of the issuer may appoint for such term as may be agreed, including for as long as a
registered public obligation may be outstanding, corporate or other authenticating
agents, transfer agents, registrars, paying or other agents and specify the terms of their
appointment, including their rights, their compensation and duties, limits upon their
liabilities and provision for their payment of liquidated damages in the event of breach
of certain of the duties imposed, which liquidated damages may be made payable to the
issuer, the owner or a financial intermediary. None of such agents need have an office
or do business within this state. The provisions of this subsection shall not relieve any
issuer from any obligation applicable to it pursuant to section 7-373.
(b) An issuer or an issuer's official or official body on behalf of the issuer may
agree with custodian banks and financial intermediaries and nominees of any of them
in connection with the establishment and maintenance by others of a central depository
system for the transfer or pledge of registered public obligations. Any such custodian
banks and financial intermediaries and nominees may, if qualified and acting as fiduciaries, also serve as authenticating agents, transfer agents, registrars, paying or other agents
of the issuer with respect to the same issue of registered public obligations.
(c) Nothing shall preclude the issuer from itself performing, either alone or jointly
with other issuers, any transfer, registration, authentication, payment or other function
described in this section.
(P.A. 83-519, S. 7, 23; P.A. 06-196, S. 272.)
History: P.A. 06-196 made a technical change in Subsec. (a), effective June 7, 2006.