17-4907. Adverse claims.
17-4907
17-4907. Adverse claims.
(a) A person asserting a claim of beneficial interest adverse to the
transfer of a security pursuant to an assignment by a fiduciary may give
the corporation or transfer agent written notice of the claim. The
corporation or transfer agent is not put on notice unless the written
notice identifies the claimant, the registered owner, and the issue of
which the security is a part, provides an address for communications
directed to the claimant and is received before the transfer. Nothing in
this act relieves the corporation or transfer agent of any liability for
making 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 for
transfer pursuant to an assignment by a fiduciary, a corporation or
transfer agent which has received notice of a claim of beneficial interest
adverse to the transfer may send notice of the presentation by registered
or certified mail to the claimant at the address given by him. If the
corporation or transfer agent so mails such a notice it shall withhold the
transfer for thirty (30) days after the mailing and shall then make the
transfer unless restrained by a court order.
History: L. 1961, ch. 123, § 5; July 1.