(1) An issuer may require the following assurance that each necessary indorsement
or each instruction is genuine and authorized:
(a) In all cases, a guaranty of the signature of the person making an indorsement
or originating an instruction including, in the case of an instruction, reasonable
assurance of identity;
(b) If the indorsement is made or the instruction is originated by an agent, appropriate
assurance of actual authority to sign;
(c) If the indorsement is made or the instruction is originated by a fiduciary pursuant
to KRS 355.8-107(1)(d) or (1)(e), appropriate evidence of appointment or incumbency;
(d) If there is more than one fiduciary, reasonable assurance that all who are required
to sign have done so; and
(e) If the indorsement is made or the instruction is originated by a person not covered
by another provision of this subsection, assurance appropriate to the case corresponding
as nearly as may be to the provisions of this subsection.
(2) An issuer may elect to require reasonable assurance beyond that specified in
(3) In this section:
(a) “Guaranty of the signature” means a guaranty signed by or on behalf of a person reasonably believed by the issuer
to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly
(b) “Appropriate evidence of appointment or incumbency” means:
1. In the case of a fiduciary appointed or qualified by a court, a certificate issued
by or under the direction or supervision of the court or an officer thereof and dated
within sixty (60) days before the date of presentation for transfer; or
2. In any other case, a copy of a document showing the appointment or a certificate
issued by or on behalf of a person reasonably believed by an issuer to be responsible
or, in the absence of that document or certificate, other evidence the issuer reasonably
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