244

LAWS OF MARYLAND

[Ch. 49

(1)    Securities governed by this [subtitle] TITLE
are negotiable instruments.

(2)   In any action on a security

(a)    Unless specifically denied in the
pleadings, each signature on the security or in a
necessary indorsement is admitted;

(b)   When the effectiveness of a signature is
put in issue the burden of establishing it is on the
party claiming under the signature but the signature is
presumed to be genuine or authorized;

(c)     When signatures are admitted or
established production of the instrument entitles a
holder to recover on it unless the defendant establishes
a defense or a defect going to the validity of the
security; and

(d)    After it is shown that a defense or
defect exists the plaintiff has the burden of
establishing that he or some person under whom he claims
is a person against whom the defense or defect is
ineffective (§ 8—202).

8-106. Applicability.

The validity of a security and the rights and duties
of the issuer with respect to registration of transfer
are governed by the law (including the conflict of laws
rules) of the jurisdiction for] OF organization of the
issuer.

8—107. Securities deliverable; action for price.

(1) Unless otherwise agreed and subject to any
applicable law or regulation respecting short sales, a
person obligated to deliver securities may deliver any
security of the specified issue in bearer form or
registered in the name of the transferee or indorsed to
him or in blank.

(2) When the buyer fails to pay the price as it
comes due under a contract of sale the seller may recover
the price

(a)   Of securities accepted by the buyer; and

(b)    Of other securities if efforts at their
resale would be unduly burdensome or if there is no
readily available market for their resale.

SUBTITLE 2. ISSUE; ISSUES.