State Codes and Statutes
Statutes > North-carolina > Chapter_25 > GS_25-8-109§25‑8‑109. Warranties in indirect holding.
(a) A person whooriginates an entitlement order to a securities intermediary warrants to thesecurities intermediary that:
(1) The entitlementorder is made by an appropriate person, or if the entitlement order is by anagent, the agent has actual authority to act on behalf of the appropriateperson; and
(2) There is no adverseclaim to the security entitlement.
(b) A person whodelivers a security certificate to a securities intermediary for credit to asecurities account or originates an instruction with respect to anuncertificated security directing that the uncertificated security be creditedto a securities account makes to the securities intermediary the warrantiesspecified in G.S. 25‑8‑108(a) or (b).
(c) If a securitiesintermediary delivers a security certificate to its entitlement holder orcauses its entitlement holder to be registered as the owner of anuncertificated security, the securities intermediary makes to the entitlementholder the warranties specified in G.S. 25‑8‑108(a) or (b). (1997‑181,s. 1.)
