17-49a08.   Protection of registering entity.(a) A registering entity is not required to offer or to accept arequest for security registration in beneficiary form. If a registration inbeneficiary form is offered by a registering entity, the owner requestingregistration in beneficiary form assents to the protections given to theregistering entity by this act.

      (b)   By accepting a request for registration of a security in beneficiaryform, the registering entity agrees that the registration will be implementedon death of the deceased owner as provided in this act.

      (c)   A registering entity is discharged from all claims to a security by theestate, creditors, heirs or devisees of a deceased owner if it registers atransfer of the security in accordance with K.S.A. 17-49a07 and doesso in good faithreliance (1) on the registration, (2) on this act, and (3) on informationprovided to it by affidavit of the personal representative of the deceasedowner, or by the surviving beneficiary or by the surviving beneficiary'srepresentatives, or other information available to the registering entity. Theprotections of this act do not extend to a reregistration or payment made aftera registering entity has received written notice from any claimant to anyinterest in the security objecting to implementation of a registration inbeneficiary form. No other notice or other information available to theregistering entity affects its right to protection under this act.

      (d)   The protection provided by this act to the registering entity of asecurity does not affect the rights of beneficiaries in disputes betweenthemselves and other claimants to ownership of the security transferred or itsvalue or proceeds.

      History:   L. 1994, ch. 44, § 8; July 1.