MARVIN MANDEL, Governor

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standards are not manifestly unreasonable. The issuer
is not charged with notice of the contents of any
document obtained pursuant to this paragraph (b) except
to the extent that the contents relate directly to the
appointment or incumbency.

(4) The issuer may elect to require reasonable
assurance beyond that specified in this section but if it
does so and for a purpose other than that specified in
subsection (3) (b) both requires and obtains a copy of a
will, trust, indenture, articles of co-partnership,
by-laws or other controlling instrument it is charged
with notice of all matters contained therein affecting
the transfer.

8—403. Limited duty of inquiry.

(1)    An issuer to whom a security is presented for
registration is under a duty to inquire into adverse
claims if

(a)    A written notification of an adverse
claim is received at a time and in a manner which affords
the issuer a reasonable opportunity to act on it prior to
the issuance of a new, re—issued or re—registered
security and the notification identifies the claimant,
the registered owner and the issue of which the security
is a part and provides an address for communications
directed to the claimant; or

(b)   The issuer is charged with notice of an
adverse claim from a controlling instrument which it has
elected to require under subsection (4) of § 8—402.

(2)   The issuer may discharge any duty of inquiry by
any reasonable means, including notifying an adverse
claimant by registered or certified mail at the address
furnished by him or if there be no such address at his
residence or regular place of business that the security
has been presented for registration of transfer by a
named person, and that the transfer will be registered
unless within thirty days from the date of mailing the
notification, either

(a) An appropriate restraining order,
injunction or other process issues from a court of
competent jurisdiction; or

(b) An indemnity bond sufficient in the
issuer's judgment to protect the issuer and any transfer
agent, registrar or other agent of the issuer involved,
from any loss which it or they may suffer by complying
with the adverse claim is filed with the issuer.