J. MILLARD TAWES, Governor                      915

(a)  a written notification of an adverse claim is received at a
time and in a manner which affords the issuer a reasonable oppor-
tunity to act on it prior to the issuance of a new, re-issued or re-
registered security and the notification identifies the claimant, the
registered owner and the issue of which the security is a part and
provides an address for communications directed to the claimant; or

(b)  the issuer is charged with notice of an adverse claim from a
controlling instrument which it has elected to require under sub-
section (4) of Section 8—402.

(2)   The issuer may discharge any duty of inquiry by any reason-
able means, including notifying an adverse claimant by registered
or certified mail at the address furnished by him or if there be no
such address at his residence or regular place of business that the
security has been presented for registration of transfer by a named
person, and that the transfer will be registered unless within thirty
days from the date of mailing the notification, either

(a)  an appropriate restraining order, injunction or other process
issues from a court of competent jurisdiction; or

(b)  an indemnity bond sufficient in the issuer's judgment to pro-
tect the issuer and any transfer agent, registrar or other agent of the
issuer involved, from any loss which it or they may suffer by comply-
ing with the adverse claim is filed with the issuer.

(3)   Unless an issuer is charged, with notice of an adverse claim
from a controlling instrument which it has elected to require under
subsection (4) of Section 8—402 or receives notification of an adverse
claim under subsection (1) of this section, where a security presented
for registration is indorsed by the appropriate person or persons
the issuer is under no duty to inquire into adverse claims. In par-
ticular

(a)  an issuer registering a security in the name of a person who is
a fiduciary or who is described as a fiduciary is not bound to inquire
into the existence, extent, or correct description of the fiduciary rela-
tionship and thereafter the issuer may assume without inquiry that
the newly registered owner continues to be the fiduciary until the
issuer receives written notice that the fiduciary is no longer acting
as such with respect to the particular security;

(b)  an issuer registering transfer on an indorsement by a fiduciary
is not bound to inquire whether the transfer is made in compliance
with a controlling instrument or with the law of the state having
jurisdiction of the fiduciary relationship, including any law requiring
the fiduciary to obtain court approval of the transfer; and

(c)  the issuer is not charged with notice of the contents of any
court record or file or other recorded or unrecorded document even
though the document is in its possession and even though the transfer
is made on the indorsement of a fiduciary to the fiduciary himself or
to his nominee.

8—404. Liability and Non-Liability for Registration.

(1) Except as otherwise provided in any law relating to the col-
lection of taxes, the issuer is not liable to the owner or any other
person suffering loss as a result of the registration of a transfer of
a security if