47-8203. Staleness as notice of defect or
defense
After an act or event, other than a call that has been revoked, creating a right to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 exchange, a purchaser is charged with notice of any defect in its issue or
defense of the issuer, if the act or event:
1. Requires the payment of money, the delivery of a certificated security, the
registration of transfer of an uncertificated security, or any of them on presentation or
surrender of the security certificate, the money or security is available on the date set
for payment or exchange, and the purchaser takes the security more than one year after
that date; or
2. Is not covered by paragraph 1 and the purchaser takes the security more than two
years after the date set for surrender or presentation or the date on which performance
became due.
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