254

LAWS OF MARYLAND

[Ch. 49

interest in the fungible bulk.

(3) Notice of an adverse claim received by the
broker or by the purchaser after the broker takes
delivery as a holder for value is not effective either as
to the broker or as to the purchaser. However, as
between the broker and the purchaser, the purchaser may
demand delivery of an equivalent security as to which no
notice of an adverse claim has been received.

8—314. Duty to deliver, when completed.

(1)    Unless otherwise agreed where a sale of a
security is made on an exchange or otherwise through
brokers

(a)   The selling customer fulfills his duty to
deliver when he places such a security in the possession
of the selling broker or of a person designated by the
broker or if requested causes an acknowledgment to be
made to the selling broker that it is held for him; and

(b)     The selling broker including a
correspondent broker acting for a selling customer
fulfills his duty to deliver by placing the security or a
like security in the possession of the buying broker or a
person designated by him or by effecting clearance of the
sale in accordance with the rules of the exchange on
which the transaction took place.

(2)    Except as otherwise provided in this section
and unless otherwise agreed, a transferor's duty to
deliver a security under a contract of purchase is not
fulfilled until he places the security in form to be
negotiated by the purchaser in the possession of the
purchaser or of a person designated by him or at the
purchaser's request causes an acknowledgment to be made
to the purchaser that it is held for him. Unless made
on an exchange a sale to a broker purchasing for his own
account is within this subsection and not within
subsection (1).

8—315. Action against purchaser based upon wrongful
transfer.

(1)   Any person against whom the transfer of a
security is wrongful for any reason, including his
incapacity, may against anyone except a bona fide
purchaser reclaim possession of the security or obtain
possession of any new security evidencing all or part of
the same rights or have damages.

(2)    If the transfer is wrongful because of an
unauthorized indorsement, the owner may also reclaim or