TITLE 5: UNIFORM COMMERCIAL CODE
DIVISION 8: INVESTMENT SECURITIES
§ 8105. Certificate Securities Negotiable; Statements and Instructions Not Negotiable; Presumptions. (1) Certificated securities governed by this division are negotiable instruments. (2) Statements (5 CMC § 8408), notices, or the like, sent by the issuer of uncertificated securities and instructions (5 CMC § 8308) are neither negotiable instruments nor certificated securities. (3) In any action on a security: (a) Unless specifically denied in the pleadings, each signature on a certificated security, in a necessary indorsement, on an initial transaction statement, or on an instruction, is admitted; (b) If the effectiveness of a signature is put in issue, the burden of establishing it is on the party claiming under the signature, but the signature is presumed to be genuine or authorized; (c) If signatures on a certificated security are admitted or established, production of the security entitles a holder to recover on it unless the defendant establishes a defense or a defect going to the validity of the security; (d) If signatures on an initial transaction statement are admitted or established, the facts stated in the statement are presumed to be true as of the time of its issuance; and (e) After it is shown that a defense or defect exists, the plaintiff has the burden of establishing that he or some person under whom he claims is a person against whom the defense or defect is ineffective (5 CMC § 8202). Source: PL 3-56, § 1 (§ 8105).