2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 81 - Short Title and General Matters
Section 8105 - Notice of adverse claim

     § 8105.  Notice of adverse claim.
        (a)  General rule.--A person has notice of an adverse claim
     if:
            (1)  the person knows of the adverse claim;
            (2)  the person is aware of facts sufficient to indicate
        that there is a significant probability that the adverse
        claim exists and deliberately avoids information that would
        establish the existence of the adverse claim; or
            (3)  the person has a duty imposed by statute or
        regulation to investigate whether an adverse claim exists and
        the investigation so required would establish the existence
        of the adverse claim.
        (b)  Knowledge of transfer of financial asset or interest
     therein.--Having knowledge that a financial asset or interest
     therein is or has been transferred by a representative imposes
     no duty of inquiry into the rightfulness of a transaction and is
     not notice of an adverse claim. However, a person who knows that
     a representative has transferred a financial asset or interest
     therein in a transaction that is, or whose proceeds are being
     used, for the individual benefit of the representative or
     otherwise in breach of duty has notice of an adverse claim.
        (c)  Staleness as notice of adverse claims.--An act or event
     that creates a right to immediate performance of the principal
     obligation represented by a security certificate or sets a date
     on or after which the certificate is to be presented or
     surrendered for redemption or exchange does not itself
     constitute notice of an adverse claim except in the case of a
     transfer more than:
            (1)  one year after a date set for presentment or
        surrender for redemption or exchange; or
            (2)  six months after a date set for payment of money
        against presentation or surrender of the certificate, if
        money was available for payment on that date.
        (d)  Notice to purchaser of certificated security.--A
     purchaser of a certificated security has notice of an adverse
     claim if the security certificate:
            (1)  whether in bearer or registered form, has been
        indorsed "for collection" or "for surrender" or for some
        other purpose not involving transfer; or
            (2)  is in bearer form and has on it an unambiguous
        statement that it is the property of a person other than the
        transferor, but the mere writing of a name on the certificate
        is not such a statement.
        (e)  Filing of financing statement not notice of adverse
     claim.--Filing of a financing statement under Division 9
     (relating to secured transactions; sales of accounts, contract
     rights and chattel paper) is not notice of an adverse claim to a
     financial asset.

        References in Text.  Division 9, referred to in subsec. (e),
     was repealed and added by the act of June 8, 2001 (P.L.123,
     No.18). Present Division 9 relates to secured transactions.