Ch. 92

1996 LAWS OF MARYLAND

(6)     "COMMUNICATE" MEANS TO:

(I)      SEND A SIGNED WRITING; OR

(II)    TRANSMIT INFORMATION BY ANY MECHANISM AGREED UPON
BY THE PERSONS TRANSMITTING AND RECEIVING THE INFORMATION.

(7)     "ENTITLEMENT HOLDER" MEANS A PERSON IDENTIFIED IN THE
RECORDS OF A SECURITIES INTERMEDIARY AS THE PERSON HAVING A SECURITY
ENTITLEMENT AGAINST THE SECURITIES INTERMEDIARY. IF A PERSON ACQUIRES A
SECURITY ENTITLEMENT BY VIRTUE OF § 8-501(B)(2) OR (3) OF THIS TITLE, THAT
PERSON IS THE ENTITLEMENT HOLDER.

(8)     "ENTITLEMENT ORDER" MEANS A NOTIFICATION COMMUNICATED
TO A SECURITIES INTERMEDIARY DIRECTING TRANSFER OR REDEMPTION OF A
FINANCIAL ASSET TO WHICH THE ENTITLEMENT HOLDER HAS A SECURITY
ENTITLEMENT.

(9)      (I) "FINANCIAL ASSET", EXCEPT AS OTHERWISE PROVIDED IN §
8-103 OF THIS SUBTITLE, MEANS:

1. A SECURITY;

          2. AN OBLIGATION OF A PERSON OR A SHARE,

PARTICIPATION, OR OTHER INTEREST IN A PERSON OR IN PROPERTY OR AN
ENTERPRISE OF A PERSON, WHICH IS, OR IS OF A TYPE, DEALT IN OR TRADED ON
FINANCIAL MARKETS, OR WHICH IS RECOGNIZED IN ANY AREA IN WHICH IT IS
ISSUED OR DEALT IN AS A MEDIUM FOR INVESTMENT; OR

3. ANY PROPERTY THAT IS HELD BY A SECURITIES
INTERMEDIARY FOR ANOTHER PERSON IN A SECURITIES ACCOUNT IF THE
SECURITIES INTERMEDIARY HAS EXPRESSLY AGREED WITH THE OTHER PERSON
THAT THE PROPERTY IS TO BE TREATED AS A FINANCIAL ASSET UNDER THIS TITLE

(II) AS CONTEXT REQUIRES, THE TERM MEANS EITHER THE
INTEREST ITSELF OR THE MEANS BY WHICH A PERSON'S CLAIM TO IT IS EVIDENCED,
INCLUDING A CERTIFICATED OR UNCERTIFICATED. SECURITY, A SECURITY
CERTIFICATE, OR A SECURITY ENTITLEMENT.

(10)    "GOOD FAITH", FOR PURPOSES OF THE OBLIGATION OF GOOD
FAITH IN THE PERFORMANCE OR ENFORCEMENT OF CONTRACTS OR DUTIES
WITHIN THIS TITLE, MEANS HONESTY IN FACT AND THE OBSERVANCE OF
REASONABLE COMMERCIAL STANDARDS OF FAIR DEALING.

(11)    "INDORSEMENT' MEANS A SIGNATURE THAT. ALONE OR
ACCOMPANIED BY OTHER WORDS IS MADE ON A SECURITY CERTIFICATE IN
REGISTERED FORM OR ON A SEPARATE DOCUMENT FOR THE PURPOSE OF
ASSIGNING, TRANSFERRING, OR REDEEMING THE SECURITY OR GRANTING A
POWER TO ASSIGN, TRANSFER, OR REDEEM IT.

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