An unauthorized signature placed on a security certificate before or in the course
of issue is ineffective, but the signature is effective in favor of a purchaser for
value of the certificated security if the purchaser is without notice of the lack
of authority and the signing has been done by:
(1) An authenticating trustee, registrar, transfer agent, or other person entrusted
by the issuer with the signing of the security certificate or of similar security
certificates, or the immediate preparation for signing of any of them; or
(2) An employee of the issuer, or of any of the persons listed in paragraph (1), entrusted
with responsible handling of the security certificate.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.