Effect of Unauthorized Signature on Security Certificate

1. Law
2. Georgia Code
3. Commercial Code
4. Investment Securities
5. Issue and Issuer
6. Effect of Unauthorized Signature on Security Certificate

An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signing has been done by:

1. An authenticating trustee, registrar, transfer agent, or other person entrusted by the issuer with the signing of the security certificate or of similar security certificates, or the immediate preparation for signing of any of them; or
2. An employee of the issuer, or of any of the persons listed in paragraph (1) of this Code section, entrusted with responsible handling of the security certificate.

(Code 1981, §11-8-205, enacted by Ga. L. 1998, p. 1323, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 15A Am. Jur. 2d, Commercial Code, § 83. 18 Am. Jur. 2d, Corporations, § 254.

C.J.S.

- 19 C.J.S., Corporations, § 667. 64A C.J.S., Municipal Corporations, §§ 1723, 1724. 81A C.J.S., States, § 190.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 8-205.

Download our app to see the most-to-date content.