Title XIII, COMMERCE (Ch. 505 - 554I)

1. The interest of a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate by the officer making the attachment or levy, except as otherwise provided in subsection 4 . However, a certificated security for which the certi…

A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing signed or record authenticated by a party against whom enforcement is sought, even if the contract or modification is not capable of performance within…

The following rules apply in an action on a certificated security against the issuer: 1. Unless specifically denied in the pleadings, each signature on a security certificate or in a necessary indorsement is admitted. 2. If the effectiveness of a signature is put in issue, the bu…

A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim…

A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial…

1. With respect to an obligation on or a defense to a security, an “issuer” includes a person that: a. places or authorizes the placing of its name on a security certificate, other than as authenticating trustee, registrar, transfer agent, or the like, to evidence a share, partic…

1. Even against a purchaser for value and without notice, the terms of a certificated security include terms stated on the certificate and terms made part of the security by reference on the certificate to another instrument, indenture, or document or to a constitution, statute, …

After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security is to be presented or surrendered for redemption or exchan…

A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless: 1. the security is certificated and the restriction is noted conspicuously on the security certificate; or 2. the …

An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signing ha…

1. If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect: a. any person may complete it by filling in the blanks as authorized; and b. even if the blanks are incorrectly filled in, the security certificate as c…

1. Before due presentment for registration of transfer of a certificated security in registered form, or of an instruction requesting registration of transfer of an uncertificated security, the issuer or indenture trustee may treat the registered owner as the person exclusively e…

1. A person signing a security certificate, as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that: a. the certificate is genuine; b. the pe…

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. 96 Acts, ch 1138, §32, 84

1. In this section , “overissue” means the issue of securities in excess of the amount the issuer has corporate power to issue, but an overissue does not occur if appropriate action has cured the overissue. 2. Except as otherwise provided in subsections 3 and 4 , the provisions o…

1. Delivery of a certificated security to a purchaser occurs when: a. the purchaser acquires possession of the security certificate; b. another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, havi…

1. Except as otherwise provided in subsections 2 and 3 , a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer. 2. A purchaser of a limited interest acquires rights only to the extent of the i…

1. “Protected purchaser” means a purchaser of a certificated or uncertificated security, or of an interest therein, who: a. gives value; b. does not have notice of any adverse claim to the security; and c. obtains control of the certificated or uncertificated security. 2. In addi…

1. An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be transferred or who has power to transfer it. A holder may convert a blank indorsement to a special indorsement. 2. …

1. If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized and the issuer may rely on it as completed, even though it has been completed incorrectly. 2. Unless otherwise agreed, a person initi…

1. A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing: a. the signature was genuine; b. the signer was an appropriate person to indorse, or if the signature is by an agent, the agent had actual authority to act on beh…

Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but if the transfer is not for value, a transferor need…

1. If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security, the issuer shall register the transfer as requested if: a.…

1. An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized: a. in all cases, a guaranty of the signature of the person making an indorsement or originating an instruction including, in the case of an instruction,…

1. A person who is an appropriate person to make an indorsement or originate an instruction may demand that the issuer not register transfer of a security by communicating to the issuer a notification that identifies the registered owner and the issue of which the security is a p…

1. Except as otherwise provided in section 554.8406 , an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered: a. pursuant to an ineffective indorsement or inst…

1. If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed, or wrongfully taken, the issuer shall issue a new certificate if the owner: a. so requests before the issuer has notice that the certificate has …

If a security certificate has been lost, apparently destroyed, or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, t…

A person acting as authenticating trustee, transfer agent, registrar, or other agent for an issuer in the registration of a transfer of its securities, in the issue of new security certificates or uncertificated securities, or in the cancellation of surrendered security certifica…

1. “Securities account” means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that compr…

An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under section 554.8501 for value and without notice of t…

1. To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holder…

1. A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities inter…

1. A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if: a. the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and t…

A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if: 1. the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder …

1. A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securiti…

A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the ent…

1. If the substance of a duty imposed upon a securities intermediary by sections 554.8504 through 554.8508 is the subject of other statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty. 2. To the extent that specific standards for the …

1. In a case not covered by the priority rules in Article 9 or the rules stated in subsection 3 , an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not…

1. Except as otherwise provided in subsections 2 and 3 , if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligatio…

This Article may be cited as Uniform Commercial Code — Secured Transactions. 2000 Acts, ch 1149, §1, 185, 187

1. Article 9 definitions. In this Article : a. “Accession” means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. b. “Account” , except as used in “account for” , “account statement” , “account to” , “commodit…

1. Definitions. In this section : a. “purchase-money collateral” means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and b. “purchase-money obligation” means an obligation of an obligor incurred as all or part of the price of…

1. Requirements for control. A secured party has control of a deposit account if: a. the secured party is the bank with which the deposit account is maintained; b. the debtor, secured party, and bank have agreed in a signed record that the bank will comply with instructions origi…

1. General rule: control of electronic copy of record evidencing chattel paper. A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evidencing the assignment of interests in the chattel paper reliably establish…

1. General rule: control of electronic money. A person has control of electronic money if: a. the electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded gives the person: (1) power to avail i…