reglab/statecodes huggingface dataset:
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 1 - SHORT TITLE AND GENERAL MATTERS (§§ 4-8-101 — 4-8-116) › Section 4-8-115 - Securities intermediary and others not liable to adverse claimant

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:
(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; or
(2)
Acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or
(3)
In the case of a security certificate that has been stolen, acted with notice of the adverse claim.
L. 96: Entire article R&RE, p. 215, § 2, effective July 1.
This section is similar to former § 4-8-318 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 1 - SHORT TITLE AND GENERAL MATTERS (§§ 4-8-101 — 4-8-116) › Section 4-8-116 - Securities intermediary as purchaser for value

A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset in favor of an entitlement holder.
L. 96: Entire article R&RE, p. 216, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-201 - Issuer

(a)
With respect to an obligation on or a defense to a security, an "issuer" includes a person that:
(1)
Places or authorizes the placing of its name on a security certificate, other than as authenticating trustee, registrar, transfer agent, or the like, to evidence a share, participation, or other interest in its property or in an enterprise, or to evidence its duty to perform an obligation represented by the certificate;
(2)
Creates a share, participation, or other interest in its property or in an enterprise, or undertakes an obligation, that is an uncertificated security;
(3)
Directly or indirectly creates a fractional interest in its rights or property, if the fractional interest is represented by a security certificate; or
(4)
Becomes responsible for, or in place of, another person described as an issuer in this section.
(b)
With respect to an obligation on or defense to a security, a guarantor is an issuer to the extent of its guaranty, whether or not its obligation is noted on a security certificate.
(c)
With respect to a registration of a transfer, issuer means a person on whose behalf transfer books are maintained.
L. 96: Entire article R&RE, p. 216, § 2, effective July 1.
This section is similar to former § 4-8-201 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-203 - Staleness as notice of defect or defense

After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is charged with notice of any defect in its issue or defense of the issuer, if the act or event:
(1)
Requires the payment of money, the delivery of a certificated security, the registration of transfer of an uncertificated security, or any of them on presentation or surrender of the security certificate, the money or security is available on the date set for payment or exchange, and the purchaser takes the security more than one year after that date; or
(2)
Is not covered by paragraph (1) of this section and the purchaser takes the security more than two years after the date set for surrender or presentation or the date on which performance became due.
L. 96: Entire article R&RE, p. 217, § 2, effective July 1.
This section is similar to former § 4-8-203 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-204 - Effect of issuer's restriction on transfer

A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless:
(1)
The security is certificated and the restriction is noted conspicuously on the security certificate; or
(2)
The security is uncertificated and the registered owner has been notified of the restriction.
L. 96: Entire article R&RE, p. 218, § 2, effective July 1.
This section is similar to former § 4-8-204 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-205 - 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 any of the persons listed in paragraph (1) of this section, entrusted with responsible handling of the security certificate.
L. 96: Entire article R&RE, p. 218, § 2, effective July 1.
This section is similar to former § 4-8-205 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-206 - Completion or alteration of security certificate

(a)
If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect:
(1)
Any person may complete it by filling in the blanks as authorized; and
(2)
Even if the blanks are incorrectly filled in, the security certificate as completed is enforceable by a purchaser who took it for value and without notice of the incorrectness.
(b)
A complete security certificate that has been improperly altered, even if fraudulently, remains enforceable, but only according to its original terms.
L. 96: Entire article R&RE, p. 218, § 2, effective July 1.
This section is similar to former § 4-8-206 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-207 - Rights and duties of issuer with respect to registered owners

(a)
Before due presentment for registration of transfer of a certificated security in registered form or of an instruction requesting registration of transfer of an uncertificated security, the issuer or indenture trustee may treat the registered owner as the person exclusively entitled to vote, receive notifications, and otherwise exercise all the rights and powers of an owner.
(b)
This article does not affect the liability of the registered owner of a security for a call, assessment, or the like.
L. 96: Entire article R&RE, p. 219, § 2, effective July 1.
This section is similar to former § 4-8-207 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-208 - Effect of signature of authenticating trustee, registrar, or transfer agent

(a)
A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that:
(1)
The certificate is genuine;
(2)
The person's own participation in the issue of the security is within the person's capacity and within the scope of the authority received by the person from the issuer; and
(3)
The person has reasonable grounds to believe that the certificated security is in the form and within the amount the issuer is authorized to issue.
(b)
Unless otherwise agreed, a person signing under subsection (a) of this section does not assume responsibility for the validity of the security in other respects.
L. 96: Entire article R&RE, p. 219, § 2, effective July 1.
This section is similar to former § 4-8-208 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-209 - Issuer's lien

A lien in favor of an issuer upon a certificated security is valid against a purchaser only if the right of the issuer to the lien is noted conspicuously on the security certificate.
L. 96: Entire article R&RE, p. 219, § 2, effective July 1.
This section is similar to former § 4-8-103 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 2 - ISSUE AND ISSUER (§§ 4-8-201 — 4-8-210) › Section 4-8-210 - Overissue

(a)
In this section, "overissue" means the issue of securities in excess of the amount the issuer has corporate power to issue, but an overissue does not occur if appropriate action has cured the overissue.
(b)
Except as otherwise provided in subsections (c) and (d) of this section, the provisions of this article which validate a security or compel its issue or reissue do not apply to the extent that validation, issue, or reissue would result in overissue.
(c)
If an identical security not constituting an overissue is reasonably available for purchase, a person entitled to issue or validation may compel the issuer to purchase the security and deliver it if certificated or register its transfer if uncertificated, against surrender of any security certificate the person holds.
(d)
If a security is not reasonably available for purchase, a person entitled to issue or validation may recover from the issuer the price the person or the last purchaser for value paid for it with interest from the date of the person's demand.
L. 96: Entire article R&RE, p. 219, § 2, effective July 1.
This section is similar to former § 4-8-104 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 3 - TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES (§§ 4-8-301 — 4-8-307) › Section 4-8-301 - Delivery

(a)
Delivery of a certificated security to a purchaser occurs when:
(1)
The purchaser acquires possession of the security certificate;
(2)
Another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, having previously acquired possession of the certificate, acknowledges that it holds for the purchaser; or
(3)
A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and is (i) registered in the name of the purchaser, (ii) payable to the order of the purchaser, or (iii) specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities intermediary or in blank.
(b)
Delivery of an uncertificated security to a purchaser occurs when:
(1)
The issuer registers the purchaser as the registered owner, upon original issue or registration of transfer; or
(2)
Another person, other than a securities intermediary, either becomes the registered owner of the uncertificated security on behalf of the purchaser or, having previously become the registered owner, acknowledges that it holds for the purchaser.
L. 96: Entire article R&RE, p. 220, § 2, effective July 1. L. 2001: (a)(3) amended, p. 1443, § 33, effective July 1.
This section is similar to former §§ 4-8-311 and 4-8-313 as they existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 3 - TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES (§§ 4-8-301 — 4-8-307) › Section 4-8-302 - Rights of purchaser

(a)
Except as otherwise provided in subsections (b) and (c) of this section, a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer.
(b)
A purchaser of a limited interest acquires rights only to the extent of the interest purchased.
(c)
A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve its position by taking from a protected purchaser.
L. 96: Entire article R&RE, p. 220, § 2, effective July 1. L. 2001: (a) amended, p. 1443, § 34, effective July 1.
This section is similar to former §§ 4-8-301 and 4-8-302 as they existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 3 - TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES (§§ 4-8-301 — 4-8-307) › Section 4-8-303 - Protected purchaser

(a)
"Protected purchaser" means a purchaser of a certificated or uncertificated security, or of an interest therein, who:
(1)
Gives value;
(2)
Does not have notice of any adverse claim to the security; and
(3)
Obtains control of the certificated or uncertificated security.
(b)
A protected purchaser also acquires its interest in the security free of any adverse claim.
Amended by 2023 Ch. 136,§ 41, eff. 8/7/2023.
L. 96: Entire article R&RE, p. 221, § 2, effective July 1.
This section is similar to former §§ 4-8-302 and 4-8-311 as they existed prior to 1996.
2023 Ch. 136, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 3 - TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES (§§ 4-8-301 — 4-8-307) › Section 4-8-304 - Indorsement

(a)
An indorsement may be in blank or special. An indorsement in blank includes an indorsement to bearer. A special indorsement specifies to whom a security is to be transferred or who has power to transfer it. A holder may convert a blank indorsement to a special indorsement.
(b)
An indorsement purporting to be only of part of a security certificate representing units intended by the issuer to be separately transferable is effective to the extent of the indorsement.
(c)
An indorsement, whether special or in blank, does not constitute a transfer until delivery of the certificate on which it appears or, if the indorsement is on a separate document, until delivery of both the document and the certificate.
(d)
If a security certificate in registered form has been delivered to a purchaser without a necessary indorsement, the purchaser may become a protected purchaser only when the indorsement is supplied. However, against a transferor, a transfer is complete upon delivery and the purchaser has a specifically enforceable right to have any necessary indorsement supplied.
(e)
An indorsement of a security certificate in bearer form may give notice of an adverse claim to the certificate, but it does not otherwise affect a right to registration that the holder possesses.
(f)
Unless otherwise agreed, a person making an indorsement assumes only the obligations provided in section
4-8-108
and not an obligation that the security will be honored by the issuer.
L. 96: Entire article R&RE, p. 221, § 2, effective July 1.
This section is similar to former §§ 4-8-307, 4-8-308, 4-8-309, and 4-8-310 as they existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 3 - TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES (§§ 4-8-301 — 4-8-307) › Section 4-8-305 - Instruction

(a)
If an instruction has been originated by an appropriate person but is incomplete in any other respect, any person may complete it as authorized and the issuer may rely on it as completed, even though it has been completed incorrectly.
(b)
Unless otherwise agreed, a person initiating an instruction assumes only the obligations imposed by section
4-8-108
and not an obligation that the security will be honored by the issuer.
L. 96: Entire article R&RE, p. 221, § 2, effective July 1.
This section is similar to former § 4-8-308 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 3 - TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES (§§ 4-8-301 — 4-8-307) › Section 4-8-307 - Purchaser's right to requisites for registration of transfer

Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but if the transfer is not for value, a transferor need not comply unless the purchaser pays the necessary expenses. If the transferor fails within a reasonable time to comply with the demand, the purchaser may reject or rescind the transfer.
L. 96: Entire article R&RE, p. 223, § 2, effective July 1.
This section is similar to former § 4-8-316 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 4 - REGISTRATION (§§ 4-8-401 — 4-8-407) › Section 4-8-401 - Duty of issuer to register transfer

(a)
If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security, the issuer shall register the transfer as requested if:
(1)
Under the terms of the security the person seeking registration of transfer is eligible to have the security registered in its name;
(2)
The indorsement or instruction is made by the appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;
(3)
Reasonable assurance is given that the indorsement or instruction is genuine and authorized (section
4-8-402
);
(4)
Any applicable law relating to the collection of taxes has been complied with;
(5)
The transfer does not violate any restriction on transfer imposed by the issuer in accordance with section
4-8-204
;
(6)
A demand that the issuer not register transfer has not become effective under section
4-8-403
, or the issuer has complied with section
4-8-403(b)
but no legal process or indemnity bond is obtained as provided in section
4-8-403(d)
; and
(7)
The transfer is in fact rightful or is to a protected purchaser.
(b)
If an issuer is under a duty to register a transfer of a security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person's principal for loss resulting from unreasonable delay in registration or failure or refusal to register the transfer.
L. 96: Entire article R&RE, p. 223, § 2, effective July 1.
This section is similar to former § 4-8-401 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 4 - REGISTRATION (§§ 4-8-401 — 4-8-407) › Section 4-8-402 - Assurance that indorsement or instruction is effective

(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
4-8-107(a)(4) or (a)(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 (a), assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection (a).
(b)
An issuer may elect to require reasonable assurance beyond that specified in this section.
(c)
In this section:
(1)
"Guaranty of the signature" means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.
(2)
"Appropriate evidence of appointment or incumbency" means:
(i)
In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within sixty days before the date of presentation for transfer; or
(ii)
In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence the issuer reasonably considers appropriate.
L. 96: Entire article R&RE, p. 223, § 2, effective July 1.
This section is similar to former § 4-8-402 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 4 - REGISTRATION (§§ 4-8-401 — 4-8-407) › Section 4-8-403 - Demand that issuer not register transfer

(a)
A person who is an appropriate person to make an indorsement or originate an instruction may demand that the issuer not register transfer of a security by communicating to the issuer a notification that identifies the registered owner and the issue of which the security is a part and provides an address for communications directed to the person making the demand. The demand is effective only if it is received by the issuer at a time and in a manner affording the issuer reasonable opportunity to act on it.
(b)
If a certificated security in registered form is presented to an issuer with a request to register transfer or an instruction is presented to an issuer with a request to register transfer of an uncertificated security after a demand that the issuer not register transfer has become effective, the issuer shall promptly communicate to (i) the person who initiated the demand at the address provided in the demand and (ii) the person who presented the security for registration of transfer or initiated the instruction requesting registration of transfer a notification stating that:
(1)
The certificated security has been presented for registration of transfer or the instruction for registration of transfer of the uncertificated security has been received;
(2)
A demand that the issuer not register transfer had previously been received; and
(3)
The issuer will withhold registration of transfer for a period of time stated in the notification in order to provide the person who initiated the demand an opportunity to obtain legal process or an indemnity bond.
(c)
The period described in subsection (b)(3) of this section may not exceed thirty days after the date of communication of the notification. A shorter period may be specified by the issuer if it is not manifestly unreasonable.
(d)
An issuer is not liable to a person who initiated a demand that the issuer not register transfer for any loss the person suffers as a result of registration of a transfer pursuant to an effective indorsement or instruction if the person who initiated the demand does not, within the time stated in the issuer's communication, either:
(1)
Obtain an appropriate restraining order, injunction, or other process from a court of competent jurisdiction enjoining the issuer from registering the transfer; or
(2)
File with the issuer an indemnity bond, sufficient in the issuer's judgment to protect the issuer and any transfer agent, registrar, or other agent of the issuer involved from any loss it or they may suffer by refusing to register the transfer.
(e)
This section does not relieve an issuer from liability for registering transfer pursuant to an indorsement or instruction that was not effective.
L. 96: Entire article R&RE, p. 224, § 2, effective July 1.
This section is similar to former § 4-8-403 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 4 - REGISTRATION (§§ 4-8-401 — 4-8-407) › Section 4-8-404 - Wrongful registration

(a)
Except as otherwise provided in section
4-8-406
, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered:
(1)
Pursuant to an ineffective indorsement or instruction;
(2)
After a demand that the issuer not register transfer became effective under section
4-8-403(a)
and the issuer did not comply with section
4-8-403(b)
;
(3)
After the issuer had been served with an injunction, restraining order, or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or
(4)
By an issuer acting in collusion with the wrongdoer.
(b)
An issuer that is liable for wrongful registration of transfer under subsection (a) of this section on demand shall provide the person entitled to the security with a like certificated or uncertificated security, and any payments or distributions that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer's liability to provide the person with a like security is governed by section
4-8-210
.
(c)
Except as otherwise provided in subsection (a) of this section or in a law relating to the collection of taxes, an issuer is not liable to an owner or other person suffering loss as a result of the registration of a transfer of a security if registration was made pursuant to an effective indorsement or instruction.
L. 96: Entire article R&RE, p. 226, § 2, effective July 1.
This section is similar to former §§ 4-8-311 and 4-8-404 as they existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 4 - REGISTRATION (§§ 4-8-401 — 4-8-407) › Section 4-8-405 - Replacement of lost, destroyed, or wrongfully taken security certificate

(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
4-8-210
. 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.
L. 96: Entire article R&RE, p. 226, § 2, effective July 1.
This section is similar to former § 4-8-405 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 4 - REGISTRATION (§§ 4-8-401 — 4-8-407) › Section 4-8-406 - Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate

If a security certificate has been lost, apparently destroyed, or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, the owner may not assert against the issuer a claim for registering the transfer under section
4-8-404
or a claim to a new security certificate under section
4-8-405
.
L. 96: Entire article R&RE, p. 227, § 2, effective July 1.
This section is similar to former § 4-8-405 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 4 - REGISTRATION (§§ 4-8-401 — 4-8-407) › Section 4-8-407 - Authenticating trustee, transfer agent, and registrar

A person acting as authenticating trustee, transfer agent, registrar, or other agent for an issuer in the registration of a transfer of its securities, in the issue of new security certificates or uncertificated securities, or in the cancellation of surrendered security certificates has the same obligation to the holder or owner of a certificated or uncertificated security with regard to the particular functions performed as the issuer has in regard to those functions.
L. 96: Entire article R&RE, p. 227, § 2, effective July 1.
This section is similar to former § 4-8-406 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-501 - Securities account - acquisition of security entitlement from securities intermediary

(a)
"Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset.
(b)
Except as otherwise provided in subsections (d) and (e) of this section, a person acquires a security entitlement if a securities intermediary:
(1)
Indicates by book entry that a financial asset has been credited to the person's securities account;
(2)
Receives a financial asset from the person or acquires a financial asset for the person and, in either case, accepts it for credit to the person's securities account; or
(3)
Becomes obligated under other law, regulation, or rule to credit a financial asset to the person's securities account.
(c)
If a condition of subsection (b) of this section has been met, a person has a security entitlement even though the securities intermediary does not itself hold the financial asset.
(d)
If a securities intermediary holds a financial asset for another person, and the financial asset is registered in the name of, payable to the order of, or specially indorsed to the other person, and has not been indorsed to the securities intermediary or in blank, the other person is treated as holding the financial asset directly rather than as having a security entitlement with respect to the financial asset.
(e)
Issuance of a security is not establishment of a security entitlement.
L. 96: Entire article R&RE, p. 227, § 2, effective July 1.
This section is similar to former § 4-8-313 as it existed prior to 1996.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-502 - Assertion of adverse claim against entitlement holder

An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who acquires a security entitlement under section
4-8-501
for value and without notice of the adverse claim.
L. 96: Entire article R&RE, p. 228, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-504 - Duty of securities intermediary to maintain financial asset

(a)
A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.
(b)
Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (a) of this section.
(c)
A securities intermediary satisfies the duty in subsection (a) of this section if:
(1)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.
(d)
This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.
L. 96: Entire article R&RE, p. 229, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-505 - Duty of securities intermediary with respect to payments and distributions

(a)
A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:
(1)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution.
(b)
A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.
L. 96: Entire article R&RE, p. 230, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holder

A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:
(1)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2)
In the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
L. 96: Entire article R&RE, p. 230, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-507 - Duty of securities intermediary to comply with entitlement order

(a)
A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. A securities intermediary satisfies the duty if:
(1)
The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.
(b)
If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it, and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer. If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.
L. 96: Entire article R&RE, p. 230, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-508 - Duty of securities intermediary to change entitlement holder's position to other form of security holding

A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:
(1)
The securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or
(2)
In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
L. 96: Entire article R&RE, p. 231, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-509 - Specification of duties of securities intermediary by other statute or regulation - manner of performance of duties of securities intermediary and exercise of rights of entitlement holder

(a)
If the substance of a duty imposed upon a securities intermediary by sections
4-8-504
through
4-8-508
is the subject of other statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty.
(b)
To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.
(c)
The obligation of a securities intermediary to perform the duties imposed by sections
4-8-504
through
4-8-508
is subject to:
(1)
Rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and
(2)
Rights of the securities intermediary under other law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.
(d)
Sections
4-8-504
through
4-8-508
do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.
L. 96: Entire article R&RE, p. 231, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-510 - Rights of purchaser of security entitlement from entitlement holder

(a)
In a case not covered by the priority rules in article
9
of this title or the rules stated in subsection (c) of this section, an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who purchases a security entitlement, or an interest therein, from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim, and obtains control.
(b)
If an adverse claim could not have been asserted against an entitlement holder under section
4-8-502
, the adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest therein, from the entitlement holder.
(c)
In a case not covered by the priority rules in article
9
of this title, a purchaser for value of a security entitlement, or an interest therein, who obtains control has priority over a purchaser of a security entitlement, or an interest therein, who does not obtain control. Except as otherwise provided in subsection (d) of this section, purchasers who have control rank according to priority in time of:
(1)
The purchaser's becoming the person for whom the securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under section
4-8-106(d)(1)
;
(2)
The securities intermediary's agreement to comply with the purchaser's entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under section
4-8-106(d)(2)
; or
(3)
If the purchaser obtained control through another person under section
4-8-106(d)(3)
, the time on which priority would be based under this subsection (c) if the other person were the secured party.
(d)
A securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed by the securities intermediary.
L. 96: Entire article R&RE, p. 232, § 2, effective July 1. L. 2001: Entire section amended, p. 1443, § 35, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 5 - SECURITY ENTITLEMENTS (§§ 4-8-501 — 4-8-511) › Section 4-8-511 - Priority among security interests and entitlement holders

(a)
Except as otherwise provided in subsections (b) and (c) of this section, if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.
(b)
A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.
(c)
If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.
L. 96: Entire article R&RE, p. 232, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 6 - TRANSITION PROVISIONS FOR REVISED ARTICLE 8 (§§ 4-8-601 — 4-8-603) › Section 4-8-601 - Effective date

This article takes effect on July 1, 1996.
L. 96: Entire article R&RE, p. 233, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 8 - INVESTMENT SECURITIES (§§ 4-8-101 — 4-8-603) › Part 6 - TRANSITION PROVISIONS FOR REVISED ARTICLE 8 (§§ 4-8-601 — 4-8-603) › Section 4-8-603 - Saving clause

(a)
This article does not affect an action or proceeding commenced before this article takes effect.
(b)
If a security interest in a security is perfected at the date this article takes effect, and the action by which the security interest was perfected would suffice to perfect a security interest under this article, no further action is required to continue perfection. If a security interest in a security is perfected at the date this article takes effect but the action by which the security interest was perfected would not suffice to perfect a security interest under this article, the security interest remains perfected for a period of four months after the effective date and continues perfected thereafter if appropriate action to perfect under this article is taken within that period. If a security interest is perfected at the date this article takes effect and the security interest can be perfected by filing under this article, a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect.
L. 96: Entire article R&RE, p. 233, § 2, effective July 1.
2023 Colorado Revised Statutes › Title 4 - UNIFORM COMMERCIAL CODE (§§ 4-1-101 — 4-13-306) › Article 9 - SECURED TRANSACTIONS (§§ 4-9-101 — 4-9-809) › Part 1 - GENERAL PROVISIONS (§§ 4-9-101 — 4-9-110) › Section 4-9-101 - Short title

This article may be cited as the "Uniform Commercial Code - Secured Transactions".
L. 2001: Entire article R&RE, p. 1313, § 1, effective July 1.
This section is similar to former § 4-9-101 as it existed prior to 2001.