Utah Code 70A-8-303. Protected purchaser

70A-8-303. Protected purchaser.

(1)

“Protected purchaser” means a purchaser of a certificated or uncertificated security, or of an interest in the security, who:

Adverse claim: means a claim that a claimant has a property interest in a financial asset and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the financial asset. See Utah Code 70A-8-101
Land: includes :Utah Code 68-3-12.5
Land company: means a mutual benefit corporation, as defined in Section 16-6a-102, that bases the use of the corporation's land on issued share ownership. See Utah Code 70A-8-101
Security: except as otherwise provided in Section 70A-8-102, means an obligation of an issuer or a share, participation, or other interest in an issuer or in property or an enterprise of an issuer that:

(i)	is represented by a security certificate in bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;

(ii)	is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations; and

(iii)

(A)	is, or is of a type, dealt in or traded on securities exchanges or securities markets; or

(B)	is a medium for investment and by its terms expressly provides that it is a security governed by this chapter. See Utah Code 70A-8-101 Uncertificated security: means a security that is not represented by a certificate. See Utah Code 70A-8-101 Water company: is a s defined in Section 16-4-102. See Utah Code 70A-8-101
(a)	gives value;

(b)	does not have notice of an adverse claim to the security;

(c)	obtains control of the security; and

(d)

for a share of stock issued by a land company or a water company:

(i)	pays, or whose predecessors in interest paid, an assessment levied against the share of stock for at least four of the immediate past seven years by the land company or the water company; or

(ii)	has used, or whose predecessors in interest have used, either directly or indirectly, the water available under the share of stock issued by a water company for at least four of the immediate past seven years.

(2)	In addition to acquiring the rights of a purchaser, a protected purchaser acquires the purchaser’s interest in the certificated or uncertificated security, share of stock in a land company, or share of stock in a water company free of any adverse claim.

Amended by Chapter 22, 2016 General Session