J. MILLARD TAWES, Governor                      913

(b)  is in bearer form or endorsed in blank by an appropriate per-
son or registered in the name of the clearing corporation or custodian
bank or a nominee of either; and

(c) is shown on the account of a transferor or pledgor on the books
of the clearing corporation;

then, in addition to other methods, a transfer or pledge of the security
or any interest therein may be effected by the making of appropriate
entries on the books of the clearing corporation reducing the account
of the transferor or pledgor and increasing the account of the
transferree or pledgee by the amount of the obligations or the num-
ber of shares or rights transferred or pledged.

(2)  Under this section entries may be with respect to like securi-
ties or interests therein as a part of a fungible bulk and may refer
merely to a quantity of a particular security without reference to
the name of the registered owner, certificate or bond number or the
like and, in appropriate cases, may be on a net basis taking into ac-
count other transfers or pledges of the same security.

(3)  A transfer or pledge under this section has the effect of a
delivery of a security in bearer form or duly endorsed in blank
(Section 8—301) representing the amount of the obligation or the
number of shares or rights transferred or pledged. If a pledge or
the creation of a security interest is intended, the making of the
entries has the effect of a taking of delivery by the pledgee or a
secured party (Sections 9—304 and 9—305). A transferree or a
pledgee under this section is a holder.

(4)  A transfer or pledge under this section does not constitute a
registration of transfer under Part 4 of this Sub-title.

(5)  That entries made on the books of the clearing corporation
as provided in Sub-section (1) are not appropriate, does not affect
the validity or effect of the entries nor the liabilities or obligations
of the clearing corporation to any person adversely affected thereby.

Part 4

Registration
8—401. Duty of Issuer to Register Transfer.

(1) Where a security in registered form is presented to the issuer
with a request to register transfer, the issuer is under a duty to
register the transfer as requested if

(a)  the security is indorsed by the appropriate person or persons
(Section 8—308); and

(b)  reasonable assurance is given that those indorsements are
genuine and effective (Section 8—402); and

(c)  the issuer has no duty to inquire into adverse claims or has
discharged any such duty (Section 8—403); and

(d)  any applicable law relating to the collection of taxes has been
complied with; and

(e)  the transfer is in fact rightful or is to a bona fide purchaser.