Section 8–406. Obligation to Notify Issuer of Lost, Destroyed, or

Terms Used In N.Y. Uniform Commercial Code 8-406

  • 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.

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 8–404 or a claim to a new security certificate under Section 8–405.