Protected purchaser.

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(a) "Protected purchaser" means a purchaser of a certificated or uncertificated security, or of an interest therein, who:

  1. Gives value;

  2. Does not have notice of any adverse claim to the security; and

  3. Obtains control of the certificated or uncertificated security.

(b) In addition to acquiring the rights of a purchaser, a protected purchaser also acquires its interest in the security free of any adverse claim.

Source: L. 96: Entire article R&RE, p. 221, § 2, effective July 1.

Editor's note: This section is similar to former §§ 4-8-302 and 4-8-311 as they existed prior to 1996.


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