California Commercial Code

§ 8115

COM § 8115 Effective Jan 1, 1997Div. 8 · Ch. 1

Statute text

A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee did one or more of the following:

(1)Took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process.

(2)Acted in collusion with the wrongdoer in violating the rights of the adverse claimant.

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Legislative history

Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.