17-4907.   Adverse claims.(a) A person asserting a claim of beneficial interest adverse to thetransfer of a security pursuant to an assignment by a fiduciary may givethe corporation or transfer agent written notice of the claim. Thecorporation or transfer agent is not put on notice unless the writtennotice identifies the claimant, the registered owner, and the issue ofwhich the security is a part, provides an address for communicationsdirected to the claimant and is received before the transfer. Nothing inthis act relieves the corporation or transfer agent of any liability formaking or refusing to make the transfer after it is so put on notice,unless it proceeds in the manner authorized in subsection (b).

      (b)   As soon as practicable after the presentation of a security fortransfer pursuant to an assignment by a fiduciary, a corporation ortransfer agent which has received notice of a claim of beneficial interestadverse to the transfer may send notice of the presentation by registeredor certified mail to the claimant at the address given by him. If thecorporation or transfer agent so mails such a notice it shall withhold thetransfer for thirty (30) days after the mailing and shall then make thetransfer unless restrained by a court order.

      History:   L. 1961, ch. 123, § 5; July 1.