Print

The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

008

:
Investment Securities











 

§

8-203. Staleness as notice of defect or defense

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event, other than a call that has been revoked, creating a right to immediate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 subdivision (1) 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. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1,

1997.)