§8-205. Effect of unauthorized signature on security certificate

Link to law: http://legislature.vermont.gov/statutes/section/09A/008/00205
Published: 2015

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Investment Securities



8-205. Effect of unauthorized signature on security certificate

An unauthorized

signature placed on a security certificate before or in the course of issue is

ineffective, but the signature is effective in favor of a purchaser for value

of the certificated security if the purchaser is without notice of the lack of

authority and the signing has been done by:

(1) an

authenticating trustee, registrar, transfer agent, or other person entrusted by

the issuer with the signing of the security certificate or of similar security

certificates, or the immediate preparation for signing of any of them; or

(2) an employee

of the issuer, or of any of the persons listed in subdivision (1), entrusted

with responsible handling of the security certificate. (Added 1995, No. 92

(Adj. Sess.), § 1, eff. Jan. 1, 1997.)