MARVIN MANDEL, Governor

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fungible bulk and may refer merely to a quantity of a
particular security without reference to the name of the
registered owner, certificate or bond number or the like
and, in appropriate cases, may be on a net basis taking
into account other transfers or pledges of the same
security.

(3) A transfer or pledge under this section has the
effect of a delivery of a security in bearer form or duly
endorsed in blank (§ 8—301) representing the amount of
the obligation or the number of shares or rights
transferred or pledged. If a pledge or the creation of
a security interest is intended, the making of the
entries has the effect of a taking of delivery by the
pledgee or a secured party (§§ 9—304 and 9—305). A
transferee or a pledgee under this section is a holder.

(4)   A transfer or pledge under this section does
not constitute a registration of transfer under [part]
SUBTITLE 4 of this [subtitle] TITLE.

(5)   That entries made on the books of the clearing
corporation as provided in subsection (1) are not
appropriate, does not affect the validity or effect of
the entries nor the liabilities or obligations of the
clearing corporation to any person adversely affected
thereby.

SUBTITLE 4. REGISTRATION.

8—401. Duty of issuer to register transfer.

(1) Where a security in registered form is
presented to the issuer with a request to register
transfer, the issuer is under a duty to register the
transfer as requested if

(a)    The security is indorsed by the
appropriate person or persons (§ 8—308); and

(b)    Reasonable assurance is given that those
indorsements are genuine and effective (§ 8—402); and

(c) The issuer has no duty to inquire into
adverse claims or has discharged any such duty (§ 8—403);
and

(d)     Any applicable law relating to 'the
collection of taxes has been complied with; and

(e)   The transfer is in fact rightful or is to
a bona fide purchaser.

(2) Where an issuer is under a duty to register a