(a)  A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary form is offered by a registering entity, the owner requesting registration in beneficiary form assents to the protections given to the registering entity pursuant to this chapter.

Terms Used In Rhode Island General Laws 7-11.1-9

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Beneficiary form: means a registration of a security that indicates the present owner of the security and the intention of the owner regarding the person who becomes the owner of the security upon the death of the owner. See Rhode Island General Laws 7-11.1-2
  • Heirs: means those persons, including the surviving spouse, who are entitled under the statutes of intestate succession to the property of a descendent. See Rhode Island General Laws 7-11.1-2
  • Personal representative: includes executor, administrator, successor, personal representative, special administrator, and persons who perform substantially the same function under the law governing their status. See Rhode Island General Laws 7-11.1-2
  • Registering entity: means a person who or that originates or transfers a security title by registration, and includes a broker maintaining security accounts for customers and a transfer agent or other person acting for or as an issuer of securities. See Rhode Island General Laws 7-11.1-2
  • Security: means a share, participation, or other interest in property, in a business, or in an obligation of an enterprise or other issuer, and includes a certificated security, an uncertificated security and a security account. See Rhode Island General Laws 7-11.1-2

(b)  By accepting a request for registration of a security in beneficiary form, the registering entity agrees that the registration will be implemented on death of the deceased owner as provided in this chapter.

(c)(1)  A registering entity is discharged from all claims to a security by the estate, creditor, heirs, or devisees of a deceased owner if it registers a transfer of the security in accordance with §?7-11.1-8 and does so in good-faith reliance:

(i)  On the registration;

(ii)  On the provisions of this chapter; and

(iii)  On information provided to it by affidavit of the personal representative of the deceased owner, or by the surviving beneficiary or by the surviving beneficiary’s representatives, or other information available to the registering entity.

(2)  The protections of this chapter do not extend to a reregistration or payment made after a registering entity has received written notice from any claimant to any interest in the security objecting to implementation of a registration in beneficiary form. No other notice or other information available to the registering entity affects its right to protection under this chapter.

(d)  The protection provided pursuant to this chapter to the registering entity of a security does not affect the rights of beneficiaries in disputes between themselves and other claimants to ownership of the security transferred or its value or proceeds.

History of Section.
P.L. 1998, ch. 260, § 1.