2016 North Dakota Century Code Title 14 Domestic Relations and Persons Chapter 14-10.1 Uniform Securities Ownership by Minors Act
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CHAPTER 14-10.1
UNIFORM SECURITIES OWNERSHIP BY MINORS ACT
14-10.1-01. Definitions.
In this chapter, unless the context or subject matter otherwise requires:
1. "Bank" means any association, firm, or corporation engaged in the business of
banking, including a national banking association, savings bank, industrial bank, or
trust company.
2. "Broker" means a person, including a bank, lawfully engaged in the business of
effecting transactions in securities for the account of others and includes a broker
lawfully engaged in buying and selling securities for the broker's own account.
3. "Issuer" means a person who places or authorizes the placing of the person's name on
a security, other than as a transfer agent, to evidence that it represents a share,
participation, or other interest in the person's property or in an enterprise or to
evidence the person's duty to perform an obligation evidenced by the security, or who
becomes responsible for or in place of any such person.
4. "Person" includes a corporation, limited liability company, government or governmental
subdivision or agency, business trust, estate, trust, partnership or association, two or
more persons having a joint or common interest, or any other legal or commercial
entity.
5. "Security" includes any note, stock, treasury stock, bond, debenture, evidence of
indebtedness, certificate of interest or participation in an oil, gas, or mining title or
lease or in payment out of production under such a title or lease, collateral trust
certificate, transferable share, voting trust certificate or, in general, any interest or
instrument commonly known as a security, or any certificate or interest or participation
in, any temporary or interim certificate, receipt, or certificate of deposit for, or any
warrant or right to subscribe to or purchase, any of the foregoing.
6. "Third party" means a person other than a bank, broker, transfer agent, or issuer who
with respect to a security held by a minor effects a transaction otherwise than directly
with the minor.
7. "Transfer agent" means a person who acts as authenticating trustee, transfer agent,
registrar, or other agent for an issuer in the registration of transfers of securities, in the
issue of new securities, or in the cancellation of surrendered securities.
14-10.1-02. No liability without notice or knowledge of minority.
A bank, broker, issuer, third party, or transfer agent incurs no liability by reason of treating a
minor as having capacity to transfer a security, to receive or to empower others to receive
dividends, interest, principal, or other payments or distributions, to vote or give consent in
person or by proxy, or to make elections or exercise rights relating to the security, unless prior to
acting in the transaction the bank, broker, issuer, third party, or transfer agent had received
written notice in the office acting in the transaction that the specific security is held by a minor or
unless an individual conducting the transaction for the bank, broker, issuer, third party, or
transfer agent had actual knowledge of the minority of the holder of the security. Except as
otherwise provided in this chapter, such a bank, broker, issuer, third party, or transfer agent may
assume without inquiry that the holder of a security is not a minor.
14-10.1-03. When minor may disaffirm or avoid transaction.
A minor, who has transferred a security; received or empowered others to receive
dividends, interest, principal, or other payments or distributions; voted or given consent in
person or by proxy; or made an election or exercised rights relating to the security, has no right
thereafter, as against a bank, broker, issuer, third party, or transfer agent to disaffirm or avoid
the transaction, unless prior to acting in the transaction the bank, broker, issuer, third party, or
transfer agent against whom the transaction is sought to be disaffirmed or avoided had received
notice in the office acting in the transaction that the specific security is held by a minor or unless
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an individual conducting the transaction for the bank, broker, issuer, third party, or transfer agent
had actual knowledge of the minority of the holder.
14-10.1-04. Uniformity - Short title.
This chapter must be so construed as to effectuate its general purpose to make uniform the
laws of those states which enact it. This chapter may be cited as the Uniform Securities
Ownership by Minors Act.
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