70A-8-104 - Notice of adverse claim. - Utah Statutes

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Statutes > Utah > Title-70a > Chapter-08 > 70a-8-104

70A-8-104. Notice of adverse claim.
(1) A person has notice of an adverse claim if:
(a) the person knows of the adverse claim;
(b) the person is aware of facts sufficient to indicate that there is a significant probabilitythat the adverse claim exists and deliberately avoids information that would establish the existenceof the adverse claim; or
(c) the person has a duty, imposed by statute or regulation, to investigate whether anadverse claim exists, and the investigation so required would establish the existence of theadverse claim.
(2) Having knowledge that a financial asset or interest therein is or has been transferredby a representative imposes no duty of inquiry into the rightfulness of a transaction and is notnotice of an adverse claim. However, a person who knows that a representative has transferred afinancial asset or interest therein in a transaction that is, or whose proceeds are being used, for theindividual benefit of the representative or otherwise in breach of duty has notice of an adverseclaim.
(3) An act or event that creates a right to immediate performance of the principalobligation represented by a security certificate or sets a date on or after which the certificate is tobe presented or surrendered for redemption or exchange does not itself constitute notice of anadverse claim except in the case of a transfer more than:
(a) one year after a date set for presentment or surrender for redemption or exchange; or
(b) six months after a date set for payment of money against presentation or surrender ofthe certificate, if money was available for payment on that date.
(4) A purchaser of a certificated security has notice of an adverse claim if the securitycertificate:
(a) whether in bearer or registered form, has been indorsed "for collection" or "forsurrender" or for some other purpose not involving transfer; or
(b) is in bearer form and has on it an unambiguous statement that it is the property of aperson other than the transferor, but the mere writing of a name on the certificate is not such astatement.
(5) Filing of a financing statement under Chapter 9 is not notice of an adverse claim to afinancial asset.

Repealed and Re-enacted by Chapter 204, 1996 General Session

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-08 > 70a-8-104

70A-8-104. Notice of adverse claim.
(1) A person has notice of an adverse claim if:
(a) the person knows of the adverse claim;
(b) the person is aware of facts sufficient to indicate that there is a significant probabilitythat the adverse claim exists and deliberately avoids information that would establish the existenceof the adverse claim; or
(c) the person has a duty, imposed by statute or regulation, to investigate whether anadverse claim exists, and the investigation so required would establish the existence of theadverse claim.
(2) Having knowledge that a financial asset or interest therein is or has been transferredby a representative imposes no duty of inquiry into the rightfulness of a transaction and is notnotice of an adverse claim. However, a person who knows that a representative has transferred afinancial asset or interest therein in a transaction that is, or whose proceeds are being used, for theindividual benefit of the representative or otherwise in breach of duty has notice of an adverseclaim.
(3) An act or event that creates a right to immediate performance of the principalobligation represented by a security certificate or sets a date on or after which the certificate is tobe presented or surrendered for redemption or exchange does not itself constitute notice of anadverse claim except in the case of a transfer more than:
(a) one year after a date set for presentment or surrender for redemption or exchange; or
(b) six months after a date set for payment of money against presentation or surrender ofthe certificate, if money was available for payment on that date.
(4) A purchaser of a certificated security has notice of an adverse claim if the securitycertificate:
(a) whether in bearer or registered form, has been indorsed "for collection" or "forsurrender" or for some other purpose not involving transfer; or
(b) is in bearer form and has on it an unambiguous statement that it is the property of aperson other than the transferor, but the mere writing of a name on the certificate is not such astatement.
(5) Filing of a financing statement under Chapter 9 is not notice of an adverse claim to afinancial asset.

Repealed and Re-enacted by Chapter 204, 1996 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-08 > 70a-8-104

70A-8-104. Notice of adverse claim.
(1) A person has notice of an adverse claim if:
(a) the person knows of the adverse claim;
(b) the person is aware of facts sufficient to indicate that there is a significant probabilitythat the adverse claim exists and deliberately avoids information that would establish the existenceof the adverse claim; or
(c) the person has a duty, imposed by statute or regulation, to investigate whether anadverse claim exists, and the investigation so required would establish the existence of theadverse claim.
(2) Having knowledge that a financial asset or interest therein is or has been transferredby a representative imposes no duty of inquiry into the rightfulness of a transaction and is notnotice of an adverse claim. However, a person who knows that a representative has transferred afinancial asset or interest therein in a transaction that is, or whose proceeds are being used, for theindividual benefit of the representative or otherwise in breach of duty has notice of an adverseclaim.
(3) An act or event that creates a right to immediate performance of the principalobligation represented by a security certificate or sets a date on or after which the certificate is tobe presented or surrendered for redemption or exchange does not itself constitute notice of anadverse claim except in the case of a transfer more than:
(a) one year after a date set for presentment or surrender for redemption or exchange; or
(b) six months after a date set for payment of money against presentation or surrender ofthe certificate, if money was available for payment on that date.
(4) A purchaser of a certificated security has notice of an adverse claim if the securitycertificate:
(a) whether in bearer or registered form, has been indorsed "for collection" or "forsurrender" or for some other purpose not involving transfer; or
(b) is in bearer form and has on it an unambiguous statement that it is the property of aperson other than the transferor, but the mere writing of a name on the certificate is not such astatement.
(5) Filing of a financing statement under Chapter 9 is not notice of an adverse claim to afinancial asset.

Repealed and Re-enacted by Chapter 204, 1996 General Session