PARRIS N. GLENDENING, Governor
Ch. 92
IF A SECURITY CERTIFICATE HAS BEEN LOST, APPARENTLY DESTROYED, OR
WRONGFULLY TAKEN, AND THE OWNER FAILS TO NOTIFY THE ISSUER OF THAT
FACT WITHIN A REASONABLE TIME AFTER THE OWNER HAS NOTICE OF IT AND THE
ISSUER REGISTERS A TRANSFER OF THE SECURITY BEFORE RECEIVING
NOTIFICATION, THE OWNER MAY NOT ASSERT AGAINST THE ISSUER A CLAIM FOR
REGISTERING THE TRANSFER UNDER § 8-404 OF THIS SUBTITLE OR A CLAIM TO A
NEW SECURITY CERTIFICATE UNDER § 8-405 OF THIS SUBTITLE
8-407.
A PERSON ACTING AS AUTHENTICATING TRUSTEE, TRANSFER AGENT,
REGISTRAR, OR OTHER AGENT FOR AN ISSUER IN THE REGISTRATION OF A
TRANSFER OF ITS SECURITIES, IN THE ISSUE OF NEW SECURITY CERTIFICATES OR
UNCERTIFICATED SECURITIES, OR IN THE CANCELLATION OF SURRENDERED
SECURITY CERTIFICATES HAS THE SAME OBLIGATION TO THE HOLDER OR OWNER
OF A CERTIFICATED OR UNCERTIFICATED SECURITY WITH REGARD TO THE
PARTICULAR FUNCTIONS PERFORMED AS THE ISSUER HAS IN REGARD TO THOSE
FUNCTIONS.
SUBTITLE 5. SECURITY ENTITLEMENTS.
8-501.
(A) "SECURITIES ACCOUNT" MEANS AN ACCOUNT TO WHICH A FINANCIAL
ASSET IS OR MAY BE CREDITED IN ACCORDANCE WITH AN AGREEMENT UNDER
WHICH THE PERSON MAINTAINING THE ACCOUNT UNDERTAKES TO TREAT THE
PERSON FOR WHOM THE ACCOUNT IS MAINTAINED AS ENTITLED TO EXERCISE THE
RIGHTS THAT COMPRISE THE FINANCIAL ASSET.
(B) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTIONS (D) AND (E) OF THIS
SECTION, A PERSON ACQUIRES A SECURITY ENTITLEMENT IF A SECURITIES
INTERMEDIARY:
(1) INDICATES BY BOOK ENTRY THAT A FINANCIAL ASSET HAS BEEN
CREDITED TO THE PERSON'S SECURITIES ACCOUNT;
(2) RECEIVES A FINANCIAL ASSET FROM THE PERSON OR ACQUIRES A
FINANCIAL ASSET FOR THE PERSON AND, IN EITHER CASE, ACCEPTS IT FOR CREDIT
TO THE PERSON'S SECURITIES ACCOUNT; OR
(3) BECOMES OBLIGATED UNDER OTHER LAW, REGULATION, OR RULE
TO CREDIT A FINANCIAL ASSET TO THE PERSON'S SECURITIES ACCOUNT.
(C) IF A CONDITION OF SUBSECTION (B) OF THIS SECTION HAS BEEN MET, A
PERSON HAS A SECURITY ENTITLEMENT EVEN THOUGH THE SECURITIES
INTERMEDIARY DOES NOT ITSELF HOLD THE FINANCIAL ASSET.
(D) IF A SECURITIES INTERMEDIARY HOLDS A FINANCIAL ASSET FOR
ANOTHER PERSON, AND THE FINANCIAL ASSET IS REGISTERED IN THE NAME OF,
PAYABLE TO THE ORDER OF, OR SPECIALLY INDORSED TO THE OTHER PERSON,
AND HAS NOT BEEN INDORSED TO THE SECURITIES INTERMEDIARY OR IN BLANK,
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