2016 California Code
Commercial Code - COM
DIVISION 8 - INVESTMENT SECURITIES
CHAPTER 4 - Registration
Section 8405.
8405. (a) If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed, or wrongfully taken, the issuer shall issue a new certificate if the owner does all of the following:
(1) So requests before the issuer has notice that the certificate has been acquired by a protected purchaser.
(2) Files with the issuer a sufficient indemnity bond.
(3) Satisfies other reasonable requirements imposed by the issuer.
(b) If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer unless an overissue would result. In that case, the issuer s liability is governed by Section 8210. In addition to any rights on the indemnity bond, an issuer may recover the new certificate from a person to whom it was issued or any person taking under that person, except a protected purchaser.
(Repealed and added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)
