64.1-206.6 - Protection of registering entity.
§ 64.1-206.6. Protection of registering entity.
A. A registering entity is not required to offer or to accept a request forsecurity registration in beneficiary form. If a registration in beneficiaryform is offered by a registering entity, the owner requesting registration inbeneficiary form assents to the protection given to the registering entity bythis chapter.
B. By accepting a request for registration of a security in beneficiary form,the registering entity agrees that the registration will be implemented ondeath of the deceased owner as provided in this chapter.
C. A registering entity is discharged from all claims to a security by theestate, creditors, heirs, or devisees of a deceased owner if it registers atransfer of the security in accordance with § 64.1-206.5 and does so in goodfaith reliance (i) on the registration, (ii) on this chapter, and (iii) oninformation provided to it by affidavit of the personal representative of thedeceased owner, or by the surviving beneficiary or by the survivingbeneficiary's representative, or other information available to theregistering entity. The protections of this chapter do not extend to areregistration or payment made after a registering entity has receivedwritten notice from any claimant to any interest in the security objecting toimplementation of a registration in beneficiary form. No other notice orother information available to the registering entity affects its right toprotection under this chapter.
D. The protection provided by this chapter to the registering entity of asecurity does not affect the rights of beneficiaries in disputes betweenthemselves and other claimants to ownership of the security transferred orits value or proceeds.
(1994, c. 422.)