Kentucky Statutes 355.8-203 – Staleness as notice of defect or defense
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After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security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 subsection (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.
Effective: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 132, effective January 1,
1997. — Amended 1986 Ky. Acts ch. 118, sec. 19, effective July 1, 1987. — Created
1958 Ky. Acts ch. 77, sec. 8-203, effective July 1, 1960.
(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
Terms Used In Kentucky Statutes 355.8-203
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Year: means calendar year. See Kentucky Statutes 446.010
(2) Is not covered by subsection (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.
Effective: January 1, 1997
History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 132, effective January 1,
1997. — Amended 1986 Ky. Acts ch. 118, sec. 19, effective July 1, 1987. — Created
1958 Ky. Acts ch. 77, sec. 8-203, effective July 1, 1960.