Section 400.8-405

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 28 Aug 1997   

  400.8-405.  Replacement of lost, destroyed or wrongfully taken security certificates. — (a)  If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed or wrongfully taken, the issuer shall issue a new certificate if the owner:

  (1)  So requests before the issuer has notice that the certificate has been acquired by a protected purchaser;

  (2)  Files with the issuer a sufficient indemnity bond; and

  (3)  Satisfies other reasonable requirements imposed by the issuer.

  (b)  If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer unless an overissue would result.  In that case, the issuer's liability is governed by section 400.8-210.  In addition to any rights on the indemnity bond, an issuer may recover the new certificate from a person to whom it was issued or any person taking under that person, except a protected purchaser.

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(L. 1963 p. 503 § 8-405, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6)