8.8A-105 - A-105. Notice of adverse claim.
§ 8.8A-105. Notice of adverse claim.
(a) A person has notice of an adverse claim if:
(1) the person knows of the adverse claim;
(2) the person is aware of facts sufficient to indicate that there is asignificant probability that the adverse claim exists and deliberately avoidsinformation that would establish the existence of the adverse claim; or
(3) the person has a duty, imposed by statute or regulation, to investigatewhether an adverse claim exists, and the investigation so required wouldestablish the existence of the adverse claim.
(b) Having knowledge that a financial asset or interest therein is or hasbeen transferred by a representative imposes no duty of inquiry into therightfulness of a transaction and is not notice of an adverse claim. However,a person who knows that a representative has transferred a financial asset orinterest therein in a transaction that is, or whose proceeds are being used,for the individual benefit of the representative or otherwise in breach ofduty has notice of an adverse claim.
(c) An act or event that creates a right to immediate performance of theprincipal obligation represented by a security certificate or sets a date onor after which the certificate is to be presented or surrendered forredemption or exchange does not itself constitute notice of an adverse claimexcept in the case of a transfer more than:
(1) one year after a date set for presentment or surrender for redemption orexchange; or
(2) six months after a date set for payment of money against presentation orsurrender of the certificate, if money was available for payment on that date.
(d) A purchaser of a certificated security has notice of an adverse claim ifthe security certificate:
(1) whether in bearer or registered form, has been endorsed "forcollection" or "for surrender" or for some other purpose not involvingtransfer; or
(2) is in bearer form and has on it an unambiguous statement that it is theproperty of a person other than the transferor, but the mere writing of aname on the certificate is not such a statement.
(e) Filing of a financing statement under Title 8.9A is not notice of anadverse claim to a financial asset.
(1996, c. 216.)