Illinois Compiled Statutes 810 ILCS 5/8-401 – Duty of issuer to register transfer
Current as of: 2024 | Check for updates
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(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
(1) under the terms of the security the person
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seeking registration of transfer is eligible to have the security registered in its name;
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(2) the indorsement or instruction is made by the
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appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;
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(3) reasonable assurance is given that the
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indorsement or instruction is genuine and authorized (Section 8-402);
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(4) any applicable law relating to the collection of
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taxes has been complied with;
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(5) the transfer does not violate any restriction on
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transfer imposed by the issuer in accordance with Section 8-204;
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(6) a demand that the issuer not register transfer
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has not become effective under Section 8-403, or the issuer has complied with Section 8-403(b) but no legal process or indemnity bond is obtained as provided in Section 8-403(d); and
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(7) the transfer is in fact rightful or is to a
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protected purchaser.
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(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.
