§ 28:8-209. Issuer's lien.

Current through October 23, 2012

A lien in favor of an issuer upon a certificated security is valid against a purchaser only if the right of the issuer to the lien is noted conspicuously on the security certificate.

                
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(Dec. 30, 1963, 77 Stat. 733, Pub. L. 88-243, § 1; Mar. 16, 1993, D.C. Law 9-196, § 4, 39 DCR 9165; renumbered and amended, Apr. 9, 1997, D.C. Law 11-240, § 2, 44 DCR 1087.)

HISTORICAL AND STATUTORY NOTES

UNIFORM COMMERCIAL CODE COMMENT

This section is similar to Sections 8-202 and 8-204 which require that the terms of a certificated security and any restriction on transfer imposed by the issuer be noted on the security certificate. This section differs from those two sections in that the purchaser's knowledge of the issuer's claim is irrelevant. "Noted" makes clear that the text of the lien provisions need not be set forth in full. However, this would not override a provision of an applicable corporation code requiring statement in haec verba. This section does not apply to uncertificated securities. It applies to the indirect holding system in the same fashion as Sections 8-202 and 8-204, see Comment 2 to Section 8-202.

Definitional Cross References

"Certificated security". Section 8-102(a)(4).

"Issuer". Section 8-201.

"Purchaser". Sections 1-201(33) and 8-116.

"Security". Section 8-102(a)(15).

"Security certificate". Section 8-102(a)(16).

Prior Codifications

1981 Ed., § 28:8-209.

1973 Ed., § 28:8-103.

Legislative History of Laws

For legislative history of D.C. Law 11-240, see Historical and Statutory Notes following § 28:8-201.