§490:8-109  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 490:8-108(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 490:8-108(a) or (b). [L 1997, c 33, pt of §2]