3736

VETOES

SUBSECTION (3) BUT ALSO WARRANTS THE RIGHTFULNESS OF THE
PARTICULAR TRANSFER, PLEDGE OR RELEASE IN ALL RESPECTS.

(7) [But no] NO issuer may require A SPECIAL GUARANTEE OF
SIGNATURE (SUBSECTION (3)), a guarantee of indorsement
(SUBSECTION (5)), OR A GUARANTEE OF INSTRUCTION (SUBSECTION (6))
as a condition to registration of transfer, PLEDGE OR RELEASE.

[(3)] (8) The foregoing warranties are made to any person
taking or dealing with the security in reliance on the guarantee
and the guarantor is liable to [such] THE person for any loss
resulting from breach of the warranties.

8-313.

(1) [Delivery] TRANSFER OF A SECURITY OR A LIMITED INTEREST
(INCLUDING A SECURITY INTEREST) THEREIN to a purchaser occurs
[when] ONLY:

(a) [He] AT THE TIME HE or a person designated by him
acquires possession of a CERTIFICATED security; [or]

(B) AT THE TIME THE TRANSFER, PLEDGE OR RELEASE OF AN
UNCERTIFICATED SECURITY IS REGISTERED TO HIM OR A PERSON
DESIGNATED BY HIM;

[(b)] (C) [His broker] AT     THE TIME HIS FINANCIAL

INTERMEDIARY acquires possession of     a CERTIFICATED security

specially indorsed to or issued in   the name of the purchaser;
[or]

[(c)] (D) [His broker] AT THE TIME A FINANCIAL
INTERMEDIARY, NOT A CLEARING CORPORATION, sends him confirmation
of the purchase and also by book entry or otherwise identifies [a.
specific security in the broker's possession] as belonging to the
purchaser [; or]:

(I)  A SPECIFIC CERTIFICATED SECURITY IN THE
FINANCIAL INTERMEDIARY'S POSSESSION;

(II)  A QUANTITY OF SECURITIES THAT CONSTITUTE
OR ARE PART OF A FUNGIBLE BULK OF CERTIFICATED SECURITIES IN THE
FINANCIAL INTERMEDIARY'S POSSESSION OR OF UNCERTIFICATED
SECURITIES REGISTERED IN THE NAME OF THE FINANCIAL INTERMEDIARY;
OR

(III)  A QUANTITY OF SECURITIES THAT CONSTITUTE
OR ARE PART OF A FUNGIBLE BULK OF SECURITIES SHOWN ON THE ACCOUNT
OF THE FINANCIAL INTERMEDIARY ON THE BOOKS OF ANOTHER FINANCIAL
INTERMEDIARY;

[(d)] (E) With respect to an identified CERTIFICATED.
security to be delivered while still in the possession of a third
person [when] NOT A FINANCIAL INTERMEDIARY AT THE TIME that
person acknowledges that he holds for the purchaser; [or]