258

LAWS OF MARYLAND

[Ch. 49

transfer of a security the issuer is also liable to the
person presenting it for registration or his principal
for loss resulting from any unreasonable delay in
registration or from failure or refusal to register the
transfer.

8-402. Assurance that indorsements are effective.

(1)    The issuer may require the following assurance
that each necessary indorsement (§ 8—308) is genuine and
effective

(a)     In all cases, a guarantee of the
signature (subsection (1) of § 8—312) of the person
indorsing; and

(b)    Where the indorsement is by an agent,
appropriate assurance of authority to sign;

(c)   Where the indorsement is by a fiduciary,
appropriate evidence of appointment or incumbency;

(d)    Where there is more than one fiduciary,
reasonable assurance that all who are required to sign
have done so;

(e)    Where the indorsement is by a person not
covered by any of the foregoing, assurance appropriate to
the case corresponding as nearly as may be to the
foregoing.

(2)    A "guarantee of the signature" in subsection
(1) leans a guarantee signed by or on behalf of a person
reasonably believed by the issuer to be responsible.
The issuer may adopt standards with respect to
responsibility provided such standards are not manifestly
unreasonable.

(3)     "Appropriate evidence of appointment or
incumbency" in subsection (1) means

(a)   In the case of a fiduciary appointed or
qualified by a court, a certificate issued by or under
the direction or supervision of that court or an officer
thereof and dated within sixty days before the date of
presentation for transfer; or

(b)   In any other case, a copy of a document
showing the appointment or a certificate issued by or on
behalf of a person reasonably believed by the issuer to
be responsible or, in the absence of such a document or
certificate, other evidence reasonably deemed by the
issuer to be appropriate. The issuer may adopt
standards with respect to such evidence provided such