(a) A person who originates an entitlement order to a securities intermediary warrants
to the securities intermediary that:
(1) The entitlement order is made by an appropriate person, or if the entitlement
order is by an agent, the agent has actual authority to act on behalf of the appropriate
(2) There is no adverse claim to the security entitlement.
(b) A person who delivers a security certificate to a securities intermediary for
credit to a securities account or originates an instruction with respect to an uncertificated
security directing that the uncertificated security be credited to a securities account
makes to the securities intermediary the warranties specified in section 490:8-108(a) or (b).
(c) If a securities intermediary delivers a security certificate to its entitlement
holder or causes its entitlement holder to be registered as the owner of an uncertificated
security, the securities intermediary makes to the entitlement holder the warranties
specified in section 490:8-108(a) or (b).
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