77 STAT. ]
PUBLIC LAW 88-243-DEC. 30, 1963
§28:8—311. Effect of unauthorized indorsement Unless the owner has ratified an unauthorized indorsement or is otherwise precluded from asserting its ineffectiveness (a) he may assert its ineffectiveness against the issuer or any purchaser other than a purchaser for value and without notice of adverse claims who has in good faith received a new, reissued or re-registered security on registration of transfer; and (b) an issuer who registers the transfer of a security upon the unauthorized indorsement is subject to liability for improper registration (section 28:8—404). § 28:8—312. Effect of guaranteeing signature or indorsement (1) Any person guaranteeing a signature of an indorser of a security warrants that at the time of signing (a) the signature was genuine; and (b) the signer was an appropriate person to indorse (section 28:8—308); and (c) the signer had legal capacity to sign. But the guarantor does not otherwise warrant the rightfulness of the particular transfer. (2) Any person may guarantee an indorsement of a security and by so doing warrants not only the signature (subsection 1) but also the rightfulness of the particular transfer in all respects. But no issuer may require a guarantee of indorsement as a condition to registration of transfer. (3) The foregoing warranties are made to any person taking or dealing with the security in reliance on the guarantee and the guarantor is liable to such person for any loss resulting from breach of the warranties. §28:8—313. When delivery to the purchaser occurs; purchaser's broker as holder (1) Delivery to a purchaser occurs when (a) he or a pereon designated by him acquires possession of a security; or (b) his broker acquires possession of a security specially indorsed to or issued in the name of the purchaser; or (c) his broker sends him confirmation of the purchase and also by book entry or otherwise identifies a specific security in the broker's possession as belonging to the purchaser; or (d) with respect to an identified security to be delivered while still in the possession of a third person when that person acknowledges that he holds for the purchaser; or (e) appropriate entries on the books of a clearing corporation are made under section 28:8—320. (2) The purchaser is the owner of a security held for him by his broker, but is not the holder except as specified in subparagraphs (b), (c) and (e) of subsection (1). Where a security is part of a fungible bulk the purchaser is the owner of a proportionate property interest in the fungible bulk. (3) Notice of an adverse claim received by the broker or by the l)urcliaser after the broker takes delivery as a holder for value is not effective either as to the broker or as to the purchaser. However, as between the broker and the purchaser the purchaser may demand delivery of an equivalent security as to which no notice of an adverse claim has been received.
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