47-8109

47-8109. Warranties in indirect
holding

A. A person who originates an entitlement order to a securities intermediary
warrants to the securities intermediary that:

1. The entitlement order is made by an appropriate person, or if the entitlement
order is by an agent, the agent has actual authority to act on behalf of the appropriate
person; and

2. There is no adverse claim to the security entitlement.

B. A person who delivers a security certificate to a securities intermediary for
credit to a securities account or originates an instruction with respect to an
uncertificated security directing that the uncertificated security be credited to a
securities account makes to the securities intermediary the warranties specified in
section 47-8108, subsection A or B.

C. If a securities intermediary delivers a security certificate to its entitlement
holder or causes its entitlement holder to be registered as the owner of an
uncertificated security, the securities intermediary makes to the entitlement holder the
warranties specified in section 47-8108, subsection A or B.