C.R.S. Section 4-8-106
Control

(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 will comply with instructions originated by the purchaser without further consent by the registered owner.

(d)

A purchaser has “control” of a security entitlement if:

(1)

The purchaser becomes the entitlement holder;

(2)

The securities intermediary has agreed that it will comply with entitlement orders originated by the purchaser without further consent by the entitlement holder; or

(3)

Another person, other than the transferor to the purchaser of an interest in the security entitlement:

(A)

Has control of the security entitlement and acknowledges that it has control on behalf of the purchaser; or

(B)

Obtains control of the security entitlement after having acknowledged that it will obtain control of the security entitlement on behalf of the purchaser.

(e)

If an interest in a security entitlement is granted by the entitlement holder to the entitlement holder’s own securities intermediary, the securities intermediary has control.

(f)

A purchaser who has satisfied the requirements of subsection (c) or (d) of this section has control even if the registered owner in the case of subsection (c) of this section or the entitlement holder in the case of subsection (d) of this section retains the right to make substitutions for the uncertificated security or security entitlement, to originate instructions or entitlement orders to the issuer or securities intermediary, or otherwise to deal with the uncertificated security or security entitlement.

(g)

An issuer or a securities intermediary may not enter into an agreement of the kind described in subsection (c)(2) or (d)(2) of this section without the consent of the registered owner or entitlement holder, but an issuer or a securities intermediary is not required to enter into such an agreement even though the registered owner or entitlement holder so directs. An issuer or securities intermediary that has entered into such an agreement is not required to confirm the existence of the agreement to another party unless requested to do so by the registered owner or entitlement holder.

(h)

A person that has control under this section is not required to acknowledge that it has control on behalf of a purchaser.

(i)

If a person acknowledges that it has or will obtain control on behalf of a purchaser, unless the person otherwise agrees or law other than this article 8 or article 9 of this title 4 otherwise provides, the person does not owe any duty to the purchaser and is not required to confirm the acknowledgment to any other person.

Source: Section 4-8-106 — Control, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-04.­pdf (accessed Oct. 20, 2023).

4‑8‑101
Short title 4‑8‑102
Definitions 4‑8‑103
Rules for determining whether certain obligations and interests are securities or financial assets 4‑8‑104
Acquisition of security or financial asset or interest therein 4‑8‑105
Notice of adverse claim 4‑8‑106
Control 4‑8‑107
Whether indorsement, instruction, or entitlement order is effective 4‑8‑108
Warranties in direct holding 4‑8‑109
Warranties in indirect holding 4‑8‑110
Applicability - choice of law 4‑8‑111
Clearing corporation rules 4‑8‑112
Creditor’s legal process 4‑8‑113
Statute of frauds inapplicable 4‑8‑114
Evidentiary rules concerning certificated securities 4‑8‑115
Securities intermediary and others not liable to adverse claimant 4‑8‑116
Securities intermediary as purchaser for value 4‑8‑201
Issuer 4‑8‑202
Issuer’s responsibility and defenses - notice of defect or defense 4‑8‑203
Staleness as notice of defect or defense 4‑8‑204
Effect of issuer’s restriction on transfer 4‑8‑205
Effect of unauthorized signature on security certificate 4‑8‑206
Completion or alteration of security certificate 4‑8‑207
Rights and duties of issuer with respect to registered owners 4‑8‑208
Effect of signature of authenticating trustee, registrar, or transfer agent 4‑8‑209
Issuer’s lien 4‑8‑210
Overissue 4‑8‑301
Delivery 4‑8‑302
Rights of purchaser 4‑8‑303
Protected purchaser 4‑8‑304
Indorsement 4‑8‑305
Instruction 4‑8‑306
Effect of guaranteeing signature, indorsement, or instruction 4‑8‑307
Purchaser’s right to requisites for registration of transfer 4‑8‑401
Duty of issuer to register transfer 4‑8‑402
Assurance that indorsement or instruction is effective 4‑8‑403
Demand that issuer not register transfer 4‑8‑404
Wrongful registration 4‑8‑405
Replacement of lost, destroyed, or wrongfully taken security certificate 4‑8‑406
Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate 4‑8‑407
Authenticating trustee, transfer agent, and registrar 4‑8‑501
Securities account - acquisition of security entitlement from securities intermediary 4‑8‑502
Assertion of adverse claim against entitlement holder 4‑8‑503
Property interest of entitlement holder in financial asset held by securities intermediary 4‑8‑504
Duty of securities intermediary to maintain financial asset 4‑8‑505
Duty of securities intermediary with respect to payments and distributions 4‑8‑506
Duty of securities intermediary to exercise rights as directed by entitlement holder 4‑8‑507
Duty of securities intermediary to comply with entitlement order 4‑8‑508
Duty of securities intermediary to change entitlement holder’s position to other form of security holding 4‑8‑509
Specification of duties of securities intermediary by other statute or regulation - manner of performance of duties of securities intermediary and exercise of rights of entitlement holder 4‑8‑510
Rights of purchaser of security entitlement from entitlement holder 4‑8‑511
Priority among security interests and entitlement holders 4‑8‑601
Effective date 4‑8‑602
Repeals 4‑8‑603
Saving clause
Green check means up to date. Up to date

Current through Fall 2024

§ 4-8-106’s source at colorado​.gov