§ 25-8-208. Effect of signature of authenticating trustee, registrar, or transfer agent.

§25‑8‑208.  Effect of signature of authenticating trustee,registrar, or transfer agent.

(a)        A person signing asecurity certificate as authenticating trustee, registrar, transfer agent, orthe like, warrants to a purchaser for value of the certificated security, ifthe purchaser is without notice of a particular defect, that:

(1)        The certificate isgenuine;

(2)        The person's ownparticipation in the issue of the security is within the person's capacity andwithin the scope of the authority received by the person from the issuer; and

(3)        The person hasreasonable grounds to believe that the certificated security is in the form andwithin the amount the issuer is authorized to issue.

(b)        Unless otherwiseagreed, a person signing under subsection (a) of this section does not assumeresponsibility for the validity of the security in other respects. (1965,c. 700, s. 1; 1989, c. 588, s. 1; 1997‑181, s. 1.)