Ch. 92

1996 LAWS OF MARYLAND

(C)     AN ACT OR EVENT THAT CREATES A RIGHT TO IMMEDIATE
PERFORMANCE OF THE PRINCIPAL OBLIGATION REPRESENTED BY A SECURITY
CERTIFICATE OR SETS A DATE ON OR AFTER WHICH THE CERTIFICATE IS TO BE
PRESENTED OR SURRENDERED FOR REDEMPTION OR EXCHANGE DOES NOT ITSELF
CONSTITUTE NOTICE OF AN ADVERSE CLAIM EXCEPT IN THE CASE OF A TRANSFER
MORE THAN:

(1)      1 YEAR AFTER A DATE SET FOR PRESENTMENT OR SURRENDER FOR
REDEMPTION OR EXCHANGE; OR

(2)     6 MONTHS AFTER A DATE SET FOR PAYMENT OF MONEY AGAINST
PRESENTATION OR SURRENDER OF THE CERTIFICATE, IF MONEY WAS AVAILABLE
FOR PAYMENT ON THAT DATE.

(D)    A PURCHASER OF A CERTIFICATED SECURITY HAS NOTICE OF AN
ADVERSE CLAIM IF THE SECURITY CERTIFICATE:

(1)     WHETHER IN BEARER OR REGISTERED FORM, HAS BEEN INDORSED
"FOR COLLECTION" OR "FOR SURRENDER" OR FOR SOME OTHER PURPOSE NOT
INVOLVING TRANSFER; OR

(2)     IS IN BEARER FORM AND HAS ON IT AN UNAMBIGUOUS STATEMENT
THAT IT IS THE PROPERTY OF A PERSON OTHER THAN THE TRANSFEROR, BUT THE
MERE WRITING OF A NAME ON THE CERTIFICATE IS NOT SUCH A STATEMENT.

(E)     FILING OF A FINANCING STATEMENT. UNDER TITLE 9 OF THIS ARTICLE IS
NOT NOTICE OF AN ADVERSE CLAIM TO A FINANCIAL ASSET.

8-106.

(A)    A PURCHASER HAS "CONTROL" OF A CERTIFICATED SECURITY IN
BEARER FORM IF THE CERTIFICATED SECURITY IS DELIVERED TO THE PURCHASER.

(B)     A PURCHASER HAS "CONTROL" OF A CERTIFICATED SECURITY IN
REGISTERED FORM IF THE CERTIFICATED SECURITY IS DELIVERED TO THE
PURCHASER, AND:

(1)     THE CERTIFICATE IS INDORSED TO THE PURCHASER OR IN BLANK
BY AN EFFECTIVE INDORSEMENT; OR

(2)     THE CERTIFICATE IS REGISTERED IN THE NAME OF THE
PURCHASER, UPON ORIGINAL ISSUE OR REGISTRATION OF TRANSFER BY THE
ISSUER.

(C)     A PURCHASER HAS "CONTROL" OF AN UNCERTIFICATED SECURITY IF:

(1) THE UNCERTIFICATED SECURITY IS DELIVERED TO THE
PURCHASER; OR

(2) THE ISSUER HAS AGREED THAT IT WELL COMPLY WITH
INSTRUCTIONS ORIGINATED BY THE PURCHASER WITHOUT FURTHER CONSENT BY
THE REGISTERED OWNER.

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