PARRIS N. GLENDENING, Governor                               Ch. 92

holder in due course (§ 3-302) and in an appropriate case would make it a person to
whom a document of title has been duly negotiated (§ 7-502) or a bona fide purchaser of
a certificated security (§ 8-302); and

(b) In all other cases as against its customer, an issuer acting in good faith
may honor the draft or demand for payment despite notification from the customer of
fraud, forgery or other defect not apparent on the face of the documents but a court of
appropriate jurisdiction may enjoin such honor.

TITLE 8. INVESTMENT SECURITIES.

SUBTITLE 1. SHORT TITLE AND GENERAL MATTERS.

8-101.

THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS MARYLAND UNIFORM
COMMERCIAL CODE - INVESTMENT SECURITIES.

8-102.

(A) IN THIS TITLE:

(1)     "ADVERSE CLAIM" MEANS A CLAIM THAT A CLAIMANT HAS A
PROPERTY INTEREST IN A FINANCIAL ASSET AND THAT IT IS A VIOLATION OF THE
RIGHTS OF THE CLAIMANT FOR ANOTHER PERSON TO HOLD, TRANSFER, OR DEAL
WITH THE FINANCIAL ASSET.

(2)     "BEARER FORM", AS APPLIED TO A CERTIFICATED SECURITY,
MEANS A FORM IN WHICH THE SECURITY IS PAYABLE TO THE BEARER OF THE
SECURITY CERTIFICATE ACCORDING TO ITS TERMS BUT NOT BY REASON OF AN
INDORSEMENT.

(3)     "BROKER" MEANS A PERSON DEFINED AS A BROKER OR DEALER
UNDER THE FEDERAL SECURITIES LAWS, BUT WITHOUT EXCLUDING A BANK
ACTING IN THAT CAPACITY.

(4)     "CERTIFICATED SECURITY" MEANS A SECURITY THAT IS
REPRESENTED BY A CERTIFICATE.

(5)     "CLEARING CORPORATION" MEANS:

(I)      A PERSON THAT IS REGISTERED AS A "CLEARING AGENCY'
UNDER THE FEDERAL SECURITIES LAWS;

(II)    A FEDERAL RESERVE BANK; OR

(III) ANY OTHER PERSON THAT PROVIDES CLEARANCE OR
SETTLEMENT SERVICES WITH RESPECT TO FINANCIAL ASSETS THAT WOULD
REQUIRE IT TO REGISTER AS A CLEARING AGENCY UNDER THE FEDERAL
SECURITIES LAWS BUT FOR AN EXCLUSION OR EXEMPTION FROM THE
REGISTRATION REQUIREMENT, IF ITS ACTIVITIES AS A CLEARING CORPORATION,
INCLUDING PROMULGATION OF RULES, ARE SUBJECT TO REGULATION BY A
FEDERAL OR STATE GOVERNMENTAL AUTHORITY.

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