§ 6A-8-403 Demand that issuer not registertransfer. – (a) A person who is an appropriate person to make an indorsement or originatean instruction may demand that the issuer not register transfer of a securityby communicating to the issuer a notification that identifies the registeredowner and the issue of which the security is a part and provides an address forcommunications directed to the person making the demand. The demand iseffective only if it is received by the issuer at a time and in a manneraffording the issuer reasonable opportunity to act on it.
(b) If a certificated security in registered form ispresented to an issuer with a request to register transfer or an instruction ispresented to an issuer with a request to register transfer of an uncertificatedsecurity after a demand that the issuer not register transfer has becomeeffective, the issuer shall promptly communicate to (i) the person whoinitiated the demand at the address provided in the demand and (ii) the personwho presented the security for registration of transfer or initiated theinstruction requesting registration of transfer a notification stating that:
(1) the certificated security has been presented forregistration of transfer or the instruction for registration of transfer of theuncertificated security has been received;
(2) a demand that the issuer not register transfer hadpreviously been received; and
(3) the issuer will withhold registration of transfer for aperiod of time stated in the notification in order to provide the person whoinitiated the demand an opportunity to obtain legal process or an indemnitybond.
(c) The period described in subsection (b)(3) may not exceed30 days after the date of communication of the notification. A shorter periodmay be specified by the issuer if it is not manifestly unreasonable.
(d) An issuer is not liable to a person who initiated ademand that the issuer not register transfer for any loss the person suffers asa result of registration of a transfer pursuant to an effective indorsement orinstruction if the person who initiated the demand does not, within the timestated in the issuer's communication, either:
(1) obtain an appropriate restraining order, injunction, orother process from a court of competent jurisdiction enjoining the issuer fromregistering the transfer; or
(2) file with the issuer an indemnity bond, sufficient in theissuer's judgment to protect the issuer and any transfer agent, registrar, orother agent of the issuer involved from any loss it or they may suffer byrefusing to register the transfer.
(e) This section does not relieve an issuer from liabilityfor registering transfer pursuant to an indorsement or instruction that was noteffective.
§ 6A-8-403 Demand that issuer not registertransfer. – (a) A person who is an appropriate person to make an indorsement or originatean instruction may demand that the issuer not register transfer of a securityby communicating to the issuer a notification that identifies the registeredowner and the issue of which the security is a part and provides an address forcommunications directed to the person making the demand. The demand iseffective only if it is received by the issuer at a time and in a manneraffording the issuer reasonable opportunity to act on it.
(b) If a certificated security in registered form ispresented to an issuer with a request to register transfer or an instruction ispresented to an issuer with a request to register transfer of an uncertificatedsecurity after a demand that the issuer not register transfer has becomeeffective, the issuer shall promptly communicate to (i) the person whoinitiated the demand at the address provided in the demand and (ii) the personwho presented the security for registration of transfer or initiated theinstruction requesting registration of transfer a notification stating that:
(1) the certificated security has been presented forregistration of transfer or the instruction for registration of transfer of theuncertificated security has been received;
(2) a demand that the issuer not register transfer hadpreviously been received; and
(3) the issuer will withhold registration of transfer for aperiod of time stated in the notification in order to provide the person whoinitiated the demand an opportunity to obtain legal process or an indemnitybond.
(c) The period described in subsection (b)(3) may not exceed30 days after the date of communication of the notification. A shorter periodmay be specified by the issuer if it is not manifestly unreasonable.
(d) An issuer is not liable to a person who initiated ademand that the issuer not register transfer for any loss the person suffers asa result of registration of a transfer pursuant to an effective indorsement orinstruction if the person who initiated the demand does not, within the timestated in the issuer's communication, either:
(1) obtain an appropriate restraining order, injunction, orother process from a court of competent jurisdiction enjoining the issuer fromregistering the transfer; or
(2) file with the issuer an indemnity bond, sufficient in theissuer's judgment to protect the issuer and any transfer agent, registrar, orother agent of the issuer involved from any loss it or they may suffer byrefusing to register the transfer.
(e) This section does not relieve an issuer from liabilityfor registering transfer pursuant to an indorsement or instruction that was noteffective.
§ 6A-8-403 Demand that issuer not registertransfer. – (a) A person who is an appropriate person to make an indorsement or originatean instruction may demand that the issuer not register transfer of a securityby communicating to the issuer a notification that identifies the registeredowner and the issue of which the security is a part and provides an address forcommunications directed to the person making the demand. The demand iseffective only if it is received by the issuer at a time and in a manneraffording the issuer reasonable opportunity to act on it.
(b) If a certificated security in registered form ispresented to an issuer with a request to register transfer or an instruction ispresented to an issuer with a request to register transfer of an uncertificatedsecurity after a demand that the issuer not register transfer has becomeeffective, the issuer shall promptly communicate to (i) the person whoinitiated the demand at the address provided in the demand and (ii) the personwho presented the security for registration of transfer or initiated theinstruction requesting registration of transfer a notification stating that:
(1) the certificated security has been presented forregistration of transfer or the instruction for registration of transfer of theuncertificated security has been received;
(2) a demand that the issuer not register transfer hadpreviously been received; and
(3) the issuer will withhold registration of transfer for aperiod of time stated in the notification in order to provide the person whoinitiated the demand an opportunity to obtain legal process or an indemnitybond.
(c) The period described in subsection (b)(3) may not exceed30 days after the date of communication of the notification. A shorter periodmay be specified by the issuer if it is not manifestly unreasonable.
(d) An issuer is not liable to a person who initiated ademand that the issuer not register transfer for any loss the person suffers asa result of registration of a transfer pursuant to an effective indorsement orinstruction if the person who initiated the demand does not, within the timestated in the issuer's communication, either:
(1) obtain an appropriate restraining order, injunction, orother process from a court of competent jurisdiction enjoining the issuer fromregistering the transfer; or
(2) file with the issuer an indemnity bond, sufficient in theissuer's judgment to protect the issuer and any transfer agent, registrar, orother agent of the issuer involved from any loss it or they may suffer byrefusing to register the transfer.
(e) This section does not relieve an issuer from liabilityfor registering transfer pursuant to an indorsement or instruction that was noteffective.
