MARVIN MANDEL, Governor

249

"Broker" means a person engaged for all or part of
his time in the business of buying and selling
securities, who in the transaction concerned acts for, or
buys a security from or sells a security to a customer.
Nothing in this [subtitle] TITLE determines the capacity
in which a person acts for purposes of any other statute
or rule to which such person is subject.

8—304. Notice to purchaser of adverse claims.

(1)    A purchaser (including a broker for the seller
or buyer but excluding an intermediary bank) of a
security is charged with notice of adverse claims if

(a)     The security whether in bearer or
registered form has been indorsed "for collection" or
"for surrender" or for some other purpose not involving
transfer; or

(b)   The security is in bearer form and has on
it an unambiguous statement that it is the property of a
person other than the transferor. The mere writing of a
name on a security is not such a statement.

(2)   The fact that the purchaser (including a broker
for the seller or buyer) has notice that the security is
held for a third person or is registered in the name of
or indorsed by a fiduciary does not create a duty of
inquiry into the rightfulness of the transfer or
constitute notice of adverse claims. If, however, the
purchaser (excluding an intermediary bank) has knowledge
that the proceeds are being used or that the transaction
is for the individual benefit of the fiduciary or
otherwise in breach of duty, the purchaser is charged
with notice of adverse claims.

8—305. Staleness as notice of adverse claims.

An act or event which creates a right to immediate
performance of the principal obligation evidenced by the
security or which sets a date on or after which the
security is to be presented or surrendered for redemption
or exchange does not of itself constitute any notice of
adverse claims except in the case of a purchase

(a)   After one year from any date set for such
presentment or surrender for redemption or exchange; or

(b)    After six months from any date set for
payment of money against presentation or surrender of the
security if funds are available for payment on that date.

8—306. Warranties on presentment and transfer.