400.8-107. Indorsement, instruction or entitlement order--effective, when.
Indorsement, instruction or entitlement order--effective, when.
400.8-107. (a) "Appropriate person" means:
(1) With respect to an indorsement, the person specified by asecurity certificate or by an effective special indorsement to be entitledto the security;
(2) With respect to an instruction, the registered owner of anuncertificated security;
(3) With respect to an entitlement order, the entitlement holder;
(4) If the person designated in paragraph (1), (2) or (3) isdeceased, the designated person's successor taking under other law or thedesignated person's personal representative acting for the estate of thedecedent; or
(5) If the person designated in paragraph (1), (2) or (3) lackscapacity, the designated person's guardian, conservator or other similarrepresentative who has power under other law to transfer the security orfinancial asset.
(b) An indorsement, instruction or entitlement order is effective if:
(1) It is made by the appropriate person;
(2) It is made by a person who has power under the law of agency totransfer the security or financial asset on behalf of the appropriateperson, including, in the case of an instruction or entitlement order, aperson who has control under section 400.8-106(c)(2) or (d)(2); or
(3) The appropriate person has ratified it or is otherwise precludedfrom asserting its ineffectiveness.
(c) An indorsement, instruction or entitlement order made by arepresentative is effective even if:
(1) The representative has failed to comply with a controllinginstrument or with the law of the state having jurisdiction of therepresentative relationship, including any law requiring the representativeto obtain court approval of the transaction; or
(2) The representative's action in making the indorsement,instruction or entitlement order or using the proceeds of the transactionis otherwise a breach of duty.
(d) If a security is registered in the name of or specially indorsedto a person described as a representative, or if a securities account ismaintained in the name of a person described as a representative, anindorsement, instruction or entitlement order made by the person iseffective even though the person is no longer serving in the describedcapacity.
(e) Effectiveness of an indorsement, instruction or entitlement orderis determined as of the date the indorsement, instruction or entitlementorder is made, and an indorsement, instruction or entitlement order doesnot become ineffective by reason of any later change of circumstances.
(L. 1963 p. 503 § 8-107, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6)*No continuity with § 400.8-107 as repealed by L. 1997 S.B. 6 § A.