Section 45.08.205. Effect of unauthorized signature on security certificate.

An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signing has been done by
        (1) an authenticating trustee, registrar, transfer agent, or other person entrusted by the issuer with the signing of the security certificate or of similar security certificates, or the immediate preparation for signing of any of them; or
        (2) an employee of the issuer, or of a person listed in (1) of this section, entrusted with responsible handling of the security certificate.

Authorities

45.08.202

Notes

References

AS 45.08.202 Issuer's responsibility and defenses; notice of defect or defense.

History

(Sec. 8.205 ch 114 SLA 1962; am Sec. 16 ch 49 SLA 1990; am Sec. 22 ch 17 SLA 1996)