910                             LAWS OF MARYLAND                      [CH. 538

(a)  he may assert its ineffectiveness against the issuer or any
purchaser other than a purchaser for value and without notice of
adverse claims who has in good faith received a new, reissued or
reregistered security on registration of transfer; and

(b)  an issuer who registers the transfer of a security upon the
unauthorized indorsement is subject to liability for improper regis-
tration (Section 8—404).

8—312. Effect of Guaranteeing Signature or Indorsement.—

(1)  Any person guaranteeing a signature of an indorser of a
security warrants that at the time of signing

(a)  the signature was genuine; and

(b)  the signer was an appropriate person to indorse (Section 8—
308); and

(c)  the signer had legal capacity to sign.

But the guarantor does not otherwise warrant the rightfulness of
the particular transfer.

(2)  Any person may guarantee an indorsement of a security and
by so doing warrants not only the signature (subsection 1) but also
the rightfulness of the particular transfer in all respects. But no
issuer may require a guarantee of indorsement as a condition to
registration of transfer.

(3)  The foregoing warranties are made to any person taking or
dealing with the security in reliance on the guarantee and the guar-
antor is liable to such person for any loss resulting from breach of
the warranties.

8—313. When Delivery to the Purchaser Occurs; Purchaser's Brok-
er as Holder.—

(1)  Delivery to a purchaser occurs when

(a)  he or a person designated by him acquires possession of a
security; or

(b)  his broker acquires possession of a security specially indorsed
to or issued in the name of the purchaser; or

(c)  his broker sends him confirmation of the purchase and also
by book entry or otherwise identifies a specific security in the broker's
possession as belonging to the purchaser; or

(d)  with respect to an identified security to be delivered while still
in the possession of a third person when that person acknowledges
that he holds for the purchaser; or

(e)  appropriate entries on the books of a clearing corporation
are made under Section 8—320.

(2)  The purchaser is the owner of a security held for him by his
broker, but is not the holder except as specified in Sub-paragraphs
(b), (c) and (e) of Sub-section (1). Where a security is part of a
fungible bulk the purchaser is the owner of a proportionate property
interest in the fungible bulk.