260

LAWS OF MARYLAND

[Ch. 49

(3) Unless an 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 or
receives notification of an adverse claim under
subsection (1) of this section, where a security
presented for registration is indorsed by the appropriate
person or persons the issuer is under no duty to inquire
into adverse claims. In particular

(a)    An issuer registering a security in the
name of a person who is a fiduciary or who is described
as a fiduciary is not bound to inquire into the
existence, extent, or correct description of the
fiduciary relationship and thereafter the issuer may
assume without inquiry that the newly registered owner
continues to be the fiduciary until the issuer receives
written notice that the fiduciary is no longer acting as
such with respect to the particular security;

(b)    An issuer registering transfer on an
indorsement by a fiduciary is not bound to inquire
whether the transfer is made in compliance with a
controlling instrument or with the law of the state
having jurisdiction of the fiduciary relationship,
including any law requiring the fiduciary to obtain court
approval of the transfer; and

(c)   The issuer is not charged with notice of
the contents of any court record or file or other
recorded or unrecorded document even though the document
is in its possession and even though the transfer is made
on the indorsement of a fiduciary to the fiduciary
himself or to his nominee.

8-401. Liability and non—liability for registration.

(1)    Except as otherwise provided in any law
relating to the collection of taxes, the issuer is not
liable to the owner or any other person suffering loss as
a result of the registration of a transfer of a security
if

(a)    There were on or with the security the
necessary indorsements (§ 8—308); and

(b)   The issuer had no duty to inquire into
adverse claims or has discharged any such duty (§ 8—403).

(2)    there an issuer has registered a transfer of a
security to a person not entitled to it the issuer on
demand must deliver a like security to the true owner
unless

fa) The registration was pursuant to