Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 8-115 — Securities Intermediary and Others Not Liable to Adverse Claimant

N.Y. U.C.C. Law § 8-115

Type: Statute
Source: New York Uniform Commercial Code
Jurisdiction: New York
Current through: Nov 5, 2026 (NY Senate Open Legislation)

Section 8--115. Securities Intermediary and Others Not Liable to Adverse

Citator

N.Y. U.C.C. Law § 8-115 — Securities Intermediary and Others Not Liable to Adverse Claimant is in force in the current edition of the Code, and nothing recorded condemns it.

Section 8--115. Securities Intermediary and Others Not Liable to Adverse

Claimant.

A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:

(1) took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or

(2) acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or

(3) in the case of a security certificate that has been stolen, acted with notice of the adverse claim.