2006 New York Code - Wrongful Registration.

 
  Section 8--404. Wrongful Registration.
    (a) Except  as  otherwise  provided  in  Section  8--406, an issuer is
  liable  for  wrongful  registration  of  transfer  if  the  issuer   has
  registered  a transfer of a security to a person not entitled to it, and
  the transfer was registered:
         (1) pursuant to an ineffective indorsement or instruction;
         (2) after a demand that the issuer not register  transfer  became
             effective  under  Section  8--403(a)  and  the issuer did not
             comply with Section 8--403(b);
         (3) after  the  issuer  had  been  served  with  an   injunction,
             restraining  order,  or other legal process enjoining it from
             registering the transfer, issued  by  a  court  of  competent
             jurisdiction,  and the issuer had a reasonable opportunity to
             act on the injunction,  restraining  order,  or  other  legal
             process; or
         (4) by an issuer acting in collusion with the wrongdoer.
    (b) An  issuer  that  is  liable for wrongful registration of transfer
  under subsection (a) on demand shall provide the person entitled to  the
  security  with  a  like certificated or uncertificated security, and any
  payments or distributions that the person did not receive as a result of
  the wrongful registration. If an overissue would  result,  the  issuer's
  liability  to  provide  the  person  with a like security is governed by
  Section 8--210.
    (c) Except as otherwise  provided  in  subsection  (a)  or  in  a  law
  relating to the collection of taxes, an issuer is not liable to an owner
  or  other  person  suffering  loss  as a result of the registration of a
  transfer of a security if registration was made pursuant to an effective
  indorsement or instruction.