MARVIN MANDEL, Governor                             253

signing

(a)   The signature was genuine; and

(b)   The signer was an appropriate person to
indorse (§ 8-308); and

(c)   The signer had legal capacity to sign.

But the guarantor does not otherwise warrant the
rightfulness of the particular transfer.

(2)   Any person may guarantee an indorsement of a
security and by so doing warrants not only the signature
(subsection 1) but also the rightfulness of the
particular transfer in all respects. But no issuer may
require a guarantee of indorsement as a condition to
registration of transfer.

(3)   The foregoing warranties are made to any person
taking or dealing with the security in reliance on the
guarantee and the guarantor is liable to such person for
any loss resulting from breach of the warranties.

8—313. When delivery to the purchaser occurs;
purchaser's broker as holder.

(1) Delivery to a purchaser occurs when

(a)   He or a person designated by him acquires
possession of a security; or

(b)    Bis broker acquires possession of a
security specially indorsed to or issued in the name of
the purchaser; or

(c)   His broker sends him confirmation of the
purchase and also by book entry or otherwise identifies a
specific security in the broker's possession as belonging
to the purchaser; or

(d)   With respect to an identified security to
be delivered while still in the possession of a third
person when that person acknowledges that he holds for
the purchaser; or

(e)    Appropriate entries on the books of a
clearing corporation are made under § 8-320.

(2) The purchaser is the owner of a security held
for him by his broker, but is not the holder except as
specified in subparagraphs (b) , (c) and (e) of subsection
(1). Where a security is part of a fungible bulk the
purchaser is the owner of a proportionate property