There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 8 Investment Securities
355.8.107 Whether indorsement, instruction, or entitlement order is effective.
Download pdf(d) If the person designated in paragraph (a), (b), or (c) of this subsection is deceased, the designated person's successor taking under other law or the
designated person's personal representative acting for the estate of the
decedent; or (e) If the person designated in paragraph (a), (b), or (c) of this subsection lacks capacity, the designated person's guardian, conservator, or other similar
representative who has power under other law to transfer the security or
financial asset. (2) An indorsement, instruction, or entitlement order is effective if: (a) It is made by the appropriate person;
(b) It is made by a person who has power under the law of agency to transfer the security or financial asset on behalf of the appropriate person, including, in the
case of an instruction or entitlement order, a person who has control under
KRS 355.8-106(3)(b) or (4)(b); or (c) The appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness. (3) An indorsement, instruction, or entitlement order made by a representative is effective even if:
(a) The representative has failed to comply with a controlling instrument or with the law of the state having jurisdiction of the representative relationship,
including any law requiring the representative to obtain court approval of the
transaction; or (b) The representative's action in making the indorsement, instruction, or entitlement order or using the proceeds of the transaction is otherwise a breach
of duty. (4) If a security is registered in the name of or specially indorsed to a person described as a representative, or if a securities account is maintained in the name of a person
described as a representative, an indorsement, instruction, or entitlement order made
by the person is effective even though the person is no longer serving in the
described capacity. (5) Effectiveness of an indorsement, instruction, or entitlement order is determined as of the date the indorsement, instruction, or entitlement order is made, and an
indorsement, instruction, or entitlement order does not become ineffective by reason
of any later change of circumstances. Effective: January 1, 1997 History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 120, effective January 1, 1997. -- Amended 1986 Ky. Acts ch. 118, sec. 15, effective July 1, 1987. -- Created
1964 Ky. Acts ch. 130, sec. 16, effective July 1, 1964.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.