Rights of purchaser

84-8-302. Rights of purchaser. (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: L. 1996, ch. 202, § 55; L. 2000, ch. 142, § 152; July 1, 2001. KANSAS COMMENT, 1996 This section is derived from the former 84-8-301 and has been redrafted. It is identical to the 1995 Official Text. Subsection (a) states the rights acquired by a purchaser on delivery of a security. "Purchaser" is broadly defined in 84-1-201(32) and (33) to include one who takes through any voluntary transaction and is a much broader definition than "buyer." Delivery means voluntary transfer of the security. 84-1-201(14). Subsection (a) adopts shelter, providing the transferee acquires all the rights of the transferor in addition to any rights the transferee acquires through the purchase. The purchaser acquires its own rights as purchaser and all rights the transferor had or could give. This subsection is illustrated by In re Kontaratos, 10 B.R. 956 (Bankr. Ct. D.Me. 1981). Under subsection (c), a purchaser cannot improve its position by delivery if it had notice of adverse claims to the security. This is a significant limitation of the right of shelter, and the Article 8 shelter does not provide as much protection as the Article 3 shelter. See 84-3-306, which shelters the transferee from claims to the instrument. Revisor's Note: Former section 84-8-302 was repealed by L. 1996, ch. 202, § 91 and the number reassigned to the current text.