(810 ILCS 5/8-401) (from Ch. 26, par. 8-401)
Sec. 8-401.
Duty of issuer to register transfer.
(a) If a certificated security in registered form is presented to an
issuer with a request to register transfer or an instruction is presented to an
issuer with a request to register transfer of an uncertificated security, the
issuer shall register the transfer as requested if:
(1) under the terms of the security the person |
| seeking registration of transfer is eligible to have the security registered in its name;
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(2) the indorsement or instruction is made by the
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| appropriate person or by an agent who has actual authority to act on behalf of the appropriate person;
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(3) reasonable assurance is given that the
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| indorsement or instruction is genuine and authorized (Section 8-402);
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(4) any applicable law relating to the collection of
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| taxes has been complied with;
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(5) the transfer does not violate any restriction on
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| transfer imposed by the issuer in accordance with Section 8-204;
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(6) a demand that the issuer not register transfer
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| has not become effective under Section 8-403, or the issuer has complied with Section 8-403(b) but no legal process or indemnity bond is obtained as provided in Section 8-403(d); and
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(7) the transfer is in fact rightful or is to a
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(b) If an issuer is under a duty to register a transfer of a security,
the issuer is liable to a person presenting a certificated security or an
instruction for registration or to the person's principal for loss resulting
from
unreasonable delay in registration or failure or refusal to register the
transfer.
(Source: P.A. 89-364, eff. 1-1-96.)
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