- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 8. Investment Securities
- Section 107. Whether Endorsement, Instruction, or Entitlement Order is Effective.
previous: Section 106
next: Section 108
. Warranties in Direct Holding.
AS 45.08.107. Whether Endorsement, Instruction, or Entitlement Order is Effective.
- (a) An endorsement, instruction, or entitlement order is effective if
- (1) it is made by the appropriate person;
- (2) it is made by a person who has power under the law of agency to transfer the security or financial asset on behalf of
the appropriate person, including, in the case of an instruction or entitlement order, a person who has control under
AS 45.08.106 (c)(2) or (d)(2); or
- (3) the appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness.
- (b) An endorsement, instruction, or entitlement order made by a representative is effective even if
- (1) the representative has failed to comply with a controlling instrument or with the law of the state having jurisdiction
of the representative relationship, including a law requiring the representative to obtain court approval of the
- (2) the representative's action in making the endorsement, instruction, or entitlement order or using the proceeds of the
transaction is otherwise a breach of duty.
- (c) If a security is registered in the name of or specially endorsed to a person described as a representative, or if a
securities account is maintained in the name of a person described as a representative, an endorsement, instruction, or
entitlement order made by the person is effective even though the person no longer serves in the described capacity.
- (d) Effectiveness of an endorsement, instruction, or entitlement order is determined as of the date the endorsement,
instruction, or entitlement order is made, and an endorsement, instruction, or entitlement order does not become
ineffective by reason of any later change of circumstances.
- (e) In this chapter, "appropriate person" means
- (1) with respect to an endorsement, the person specified by a security certificate or by an effective special endorsement
to be entitled to the security;
- (2) with respect to an instruction, the registered owner of an uncertificated security;
- (3) with respect to an entitlement order, the entitlement holder;
- (4) if the person designated in (1), (2), or (3) of this subsection is deceased, the designated person's successor taking
under other law or the designated person's personal representative acting for the estate of the decedent; or
- (5) if the person designated in (1), (2), or (3) of this subsection lacks capacity, the designated person's guardian,
conservator, or other similar representative who has power under other law to transfer the security or financial asset.
All content © 2008 by Touch
N' Go/Bright Solutions, Inc.
Note to HTML Version:
This version of the Alaska Statutes is current through December, 2007. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature
If any errors are found, please e-mail Touch N' Go systems at E-mail. We
hope you find this information useful.