C.R.S. Section 4-8-107
Whether indorsement, instruction, or entitlement order is effective


(a)

“Appropriate person” means:

(1)

With respect to an indorsement, the person specified by a security certificate or by an effective special indorsement to be entitled to the security;

(2)

With respect to an instruction, the registered owner of an uncertificated security;

(3)

With respect to an entitlement order, the entitlement holder;

(4)

If the person designated in paragraph (1), (2), or (3) of this subsection (a) is deceased, the designated person’s successor taking under other law or the designated person’s personal representative acting for the estate of the decedent; or

(5)

If the person designated in paragraph (1), (2), or (3) of this subsection (a) lacks capacity, the designated person’s guardian, conservator, or other similar representative who has power under other law to transfer the security or financial asset.

(b)

An indorsement, instruction, or entitlement order is effective if:

(1)

It is made by the appropriate person;

(2)

It is made by a person who has power under the law of agency to transfer the security or financial asset on behalf of the appropriate person, including, in the case of an instruction or entitlement order, a person who has control under section 4-8-106 (c)(2) or (d)(2); or

(3)

The appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness.

(c)

An indorsement, instruction, or entitlement order made by a representative is effective even if:

(1)

The representative has failed to comply with a controlling instrument or with the law of the State having jurisdiction of the representative relationship, including any law requiring the representative to obtain court approval of the transaction; or

(2)

The representative’s action in making the indorsement, instruction, or entitlement order or using the proceeds of the transaction is otherwise a breach of duty.

(d)

If a security is registered in the name of or specially indorsed to a person described as a representative, or if a securities account is maintained in the name of a person described as a representative, an indorsement, instruction, or entitlement order made by the person is effective even though the person is no longer serving in the described capacity.

(e)

Effectiveness of an indorsement, instruction, or entitlement order is determined as of the date the indorsement, instruction, or entitlement order is made, and an indorsement, instruction, or entitlement order does not become ineffective by reason of any later change of circumstances.

Source: Section 4-8-107 — Whether indorsement, instruction, or entitlement order is effective, 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

§ 4-8-107’s source at colorado​.gov