Texas Business & Commerce Code

§ 8.402 — ASSURANCE THAT INDORSEMENT OR INSTRUCTION IS EFFECTIVE

BC § 8.402Title 1. UNIFORM COMMERCIAL CODE · Ch. 8. INVESTMENT SECURITIES · Art. D. REGISTRATION

Statute text

(a)An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized:

(1)in all cases, a guaranty of the signature of the person making an indorsement or originating an instruction, including, in the case of an instruction, reasonable assurance of identity;

(2)if the indorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign;

(3)if the indorsement is made or the instruction is originated by a fiduciary pursuant to Section 8.107(a)(4) or (5), appropriate evidence of appointment or incumbency;

(4)if there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and

(5)if the indorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.

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Legislative history

Amended by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995