North Dakota Code 41-08-35 – (8-402) Assurance that endorsement or instruction is effective
1. An issuer may require the following assurance that each necessary endorsement or each instruction is genuine and authorized:
Terms Used In North Dakota Code 41-08-35
- Authorized: when used with reference to a financing statement record, means that the financing statement record was filed by a person authorized to do so as provided in sections 41-09-80 and 41-09-130. See North Dakota Code 41-10-01
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiduciary: A trustee, executor, or administrator.
- following: when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part. See North Dakota Code 1-01-49
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
a. In all cases, a guaranty of the signature of the person making an endorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity; b. If the endorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign; c. If the endorsement is made or the instruction is originated by a fiduciary pursuant to subdivision d or e of subsection 1 of section 41-08-07, appropriate evidence of appointment or incumbency; d. If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and
e. If the endorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.
2. An issuer may elect to require reasonable assurance beyond that specified in this section.
3. In this section:
a. “Appropriate evidence of appointment or incumbency” means:
(1) 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
(2) 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.
b. “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.