• Current through October 23, 2012

Except as otherwise provided by this chapter, a corporation or transfer agent making a transfer of a security pursuant to an assignment by a fiduciary:

(1) may assume without inquiry that the assignment, even though to the fiduciary himself or his nominee, is within his authority and capacity and is not in breach of his fiduciary duties;

(2) may assume without inquiry that the fiduciary has complied with any controlling instrument and with the law of the jurisdiction governing the fiduciary relationship, including any law requiring the fiduciary to obtain court approval of the transfer; and

(3) is not charged with notice of and is not bound to obtain or examine any court record or recorded or unrecorded document relating to the fiduciary relationship or the assignment, even though the record or document is in its possession.

(Aug. 30, 1964, 78 Stat. 673, Pub. L. 88-509, § 1.)


Prior Codifications

1981 Ed., § 28-2903.

1973 Ed., § 28-2903.

Uniform Law

This section is based upon § 3 of the Uniform Act for Simplification of Fiduciary Security Transfers. See 7C Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.