248

LAWS OF MARYLAND

[Ch. 49

8—208. Effect of signature of authenticating trustee,
registrar or transfer agent.

(1)    A person placing his signature upon a security
as authenticating trustee, registrar, transfer agent or
the like warrants to a purchaser for value without notice
of the particular defect that

(a)   The security is genuine; and

(b)   His own participation in the issue of the
security is within his capacity and within the scope of
the authorization received by him from the issuer; and

(c)   He has reasonable grounds to believe that
the security is in the form and within the amount the
issuer is authorized to issue.

(2)   Unless otherwise agreed, a person by so placing
his signature does not assume responsibility for the
validity of the security in other respects.

SUBTITLE 3. PURCHASE.

8—301. Rights acquired by purchaser; "adverse claim";
title acquired by bona fide purchaser.

(1)    Upon delivery of a security the purchaser
acquires the rights in the security which his transferor
had or had actual authority to convey except that a
purchaser who has himself been a party to any fraud or
illegality affecting the security or who as a prior
holder had notice of an adverse claim cannot improve his
position by taking from a later bona fide purchaser.
"Adverse claim" includes a claim that a transfer was or
would be wrongful or that a particular adverse person is
the owner of or has an interest in the security.

(2)   A bona fide purchaser in addition to acquiring
the rights of a purchaser also acquires the security free
of any adverse claim.

(3)    A purchaser of a limited interest acquires
rights only to the extent of the interest purchased.

8—302. "Bona fide purchaser.

A "bona fide purchaser" is a purchaser for value in
good faith and without notice of any adverse claim who
takes delivery of a security in bearer form or of one in
registered form issued to him or indorsed to him or in
blank.

8-303. "Broker."