Rights of Purchaser

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Investment Securities
  5. Transfer of Certificated and Uncertificated Securities
  6. Rights of Purchaser

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  1. Except as otherwise provided in subsections (b) and (c) of this Code section, a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer.
  2. A purchaser of a limited interest acquires rights only to the extent of the interest purchased.
  3. A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve its position by taking from a protected purchaser.

(Code 1981, §11-8-302, enacted by Ga. L. 1998, p. 1323, § 1; Ga. L. 2001, p. 362, § 21.)

The 2001 amendment, effective July 1, 2001, in subsection (a), substituted "a purchaser" for "upon delivery" and deleted "to a purchaser, the purchaser" following "or uncertificated security".

RESEARCH REFERENCES

Am. Jur. 2d.

- 15A Am. Jur. 2d, Commercial Code, § 89 et seq.

C.J.S.

- 19 C.J.S., Corporations, § 670. 64A C.J.S., Municipal Corporations, § 1710 et seq. 81A C.J.S., States, § 186 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 8-302.

ALR.

- Rights of owner and bona fide purchaser of lost or stolen stock certificates, 52 A.L.R. 947.

Right or duty of corporation to refuse to transfer stock on presentation of properly indorsed certificate, because of conflicting rights or claims of one other than transferee, 75 A.L.R.2d 746.

Conditions printed on confirmation slips as binding on customers of stock or commodity broker, 71 A.L.R.2d 1089.

Validity of "consent restraint" on transfer of shares of close corporation, 69 A.L.R.3d 1327.


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