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355.8-109 Warranties in indirect holding.
(1) A person who originates an entitlement order to a securities intermediary warrants
to the securities intermediary that: <br>(a) The entitlement order is made by an appropriate person, or if the entitlement
order is by an agent, the agent has actual authority to act on behalf of the <br>appropriate person; and
(b) There is no adverse claim to the security entitlement.
(2) A person who delivers a security certificate to a securities intermediary for credit to
a securities account or originates an instruction with respect to an uncertificated <br>security directing that the uncertificated security be credited to a securities account <br>makes to the securities intermediary the warranties specified in KRS 355.8-108(1) <br>or (2).
(3) If a securities intermediary delivers a security certificate to its entitlement holder or
causes its entitlement holder to be registered as the owner of an uncertificated <br>security, the securities intermediary makes to the entitlement holder the warranties <br>specified in KRS 355.8-108(1) or (2).
Effective: January 1, 1997 <br>History: Created 1996 Ky. Acts ch. 130, sec. 122, effective January 1, 1997.
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