2006 New York Code - Warranties In Indirect Holding.

 
  Section 8--109. Warranties in Indirect Holding.
    (a) A  person  who  originates  an  entitlement  order to a securities
  intermediary warrants to the securities intermediary that:
         (1) 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 appropriate person; and
         (2) there is no adverse claim to the security entitlement.
    (b) 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 security directing that
  the uncertificated security be credited to a securities account makes to
  the securities intermediary the warranties specified in Section 8-108(a)
  or (b).
    (c) 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 security, the securities intermediary
  makes to the entitlement holder  the  warranties  specified  in  Section
  8--108(a) or (b).