A securities intermediary that has transferred a financial asset pursuant to an effective
entitlement order, or a broker or other agent or bailee that has dealt with a financial
asset at the direction of its customer or principal, is not liable to a person having
an adverse claim to the financial asset, unless the securities intermediary, or broker
or other agent or bailee:
(1) took the action after it had been served with an injunction, restraining order,
or other legal process enjoining it from doing so issued by a court of competent jurisdiction
and had a reasonable opportunity to act on the injunction, restraining order, or other
(2) acted in collusion with the wrongdoer in violating the rights of the adverse claimant;
(3) in the case of a security certificate that has been stolen, acted with notice
of the adverse claim.
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.
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