Ch. 92

1996 LAWS OF MARYLAND

(3)     THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON
TRANSFER; AND

(4)     THE TRANSFER IS OTHERWISE EFFECTIVE AND RIGHTFUL.

(D)    A PERSON WHO INDORSES A SECURITY CERTIFICATE WARRANTS TO THE
ISSUER THAT:               

(1)     THERE IS NO ADVERSE CLAIM TO THE SECURITY; AND

(2)     THE INDORSEMENT IS EFFECTIVE.

(E)     A PERSON WHO ORIGINATES AN INSTRUCTION FOR REGISTRATION OF
TRANSFER OF AN UNCERTIFICATED SECURITY WARRANTS TO THE ISSUER THAT:

(1)     THE INSTRUCTION IS EFFECTIVE; AND

(2)     AT THE TIME THE INSTRUCTION IS PRESENTED TO THE ISSUER THE
PURCHASER WILL BE ENTITLED TO THE REGISTRATION OF TRANSFER.

(F)     A PERSON WHO PRESENTS A CERTIFICATED SECURITY FOR
REGISTRATION OF TRANSFER OR FOR PAYMENT OR EXCHANGE WARRANTS TO THE
ISSUER THAT THE PERSON IS ENTITLED TO THE REGISTRATION, PAYMENT, OR
EXCHANGE, BUT A PURCHASER FOR VALUE AND WITHOUT NOTICE OF ADVERSE
CLAIMS TO WHOM TRANSFER IS REGISTERED WARRANTS ONLY THAT THE PERSON
HAS NO KNOWLEDGE OF ANY UNAUTHORIZED SIGNATURE IN A NECESSARY
INDORSEMENT.

(G)    IF A PERSON ACTS AS AGENT OF ANOTHER IN DELIVERING A
CERTIFICATED SECURITY TO A PURCHASER, THE IDENTITY OF THE PRINCIPAL WAS
KNOWN TO THE PERSON TO WHOM THE CERTIFICATE WAS DELIVERED, AND THE
CERTIFICATE DELIVERED BY THE AGENT WAS RECEIVED BY THE AGENT FROM THE
PRINCIPAL OR RECEIVED BY THE AGENT FROM ANOTHER PERSON. AT THE
DIRECTION OF THE PRINCIPAL, THE PERSON DELIVERING THE SECURITY
CERTIFICATE WARRANTS ONLY THAT THE DELIVERING PERSON HAS AUTHORITY
TO ACT FOR THE PRINCIPAL AND DOES NOT KNOW OF ANY ADVERSE CLAIM TO THE
CERTIFICATED SECURITY.

(H) A SECURED PARTY WHO REDELIVERS A SECURITY CERTIFICATE
RECEIVED, OR AFTER PAYMENT AND ON ORDER OF THE DEBTOR DELIVERS THE
SECURITY CERTIFICATE TO ANOTHER PERSON, MAKES ONLY THE WARRANTIES OF
AN AGENT UNDER SUBSECTION (G) OF THIS SECTION.

(I) (1) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (G) OF THIS
SECTION, A BROKER ACTING FOR A CUSTOMER MAKES TO THE ISSUER AND A
PURCHASER THE WARRANTIES PROVIDED IN SUBSECTIONS (A) THROUGH (F) OF
THIS SECTION.

(2) A BROKER THAT DELIVERS A SECURITY CERTIFICATE TO ITS
CUSTOMER, OR CAUSES ITS CUSTOMER TO BE REGISTERED AS THE OWNER OF AN
UNCERTIFICATED SECURITY, MAKES TO THE CUSTOMER THE WARRANTIES

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