Rights of Purchaser

Ala. Code § 7-8-302 — under Title 7.

Ala. Code § 7-8-302

(a) Except as otherwise provided in subsections (b) and (c), a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer. (b) A purchaser of a limited interest acquires rights only to the extent of the interest purchased.

(c) A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve its position by taking from a protected purchaser.

History: (Acts 1996, No. 96-742, p. 1241, §1; Act 2001-481, p. 647, §2.)