Notice of Adverse Claim.
(a) A person has notice of an adverse claim if:
(b) Having knowledge that a financial asset or interest therein is or has been transferred by a representative imposes no duty of inquiry into the rightfulness of a transaction and is not notice of an adverse claim. However, a person who knows that a representative has transferred a financial asset or interest therein in a transaction that is, or whose proceeds are being used, for the individual benefit of the representative or otherwise in breach of duty has notice of an adverse claim.
(c) An act or event that creates a right to immediate performance of the principal obligation represented by a security certificate or sets a date on or after which the certificate is to be presented or surrendered for redemption or exchange does not itself constitute notice of an adverse claim except in the case of a transfer more than:
(d) A purchaser of a certificated security has notice of an adverse claim if the security certificate:
(e) Filing of a financing statement under Article 9 of this code is not notice of an adverse claim to a financial asset.
Added by Laws 1961, p. 152, § 8-105. Amended by Laws 1984, c. 76, § 6, eff. Nov. 1, 1984; Laws 1995, c. 242, § 5, eff. Feb. 1, 1996.