N.D. Cent. Code § 41-08-27
(8-301) Delivery
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) Delivery of a certificated security to a purchaser occurs when: The purchaser acquires possession of the security certificate;
(1) Delivery of a certificated security to a purchaser occurs when: The purchaser acquires possession of the security certificate;
(2) Another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, having previously acquired possession of the certificate, acknowledges that it holds for the purchaser; or
(2) Another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, having previously acquired possession of the certificate, acknowledges that it holds for the purchaser; or
(3) A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and is: Registered in the name of the purchaser;
(3) A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and is: Registered in the name of the purchaser;
(4) Payable to the order of the purchaser; or
(4) Payable to the order of the purchaser; or
(5) Specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities intermediary or in blank.
(5) Specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities intermediary or in blank.
(6) Delivery of an uncertificated security to a purchaser occurs when: The issuer registers the purchaser as the registered owner, upon original issue or registration of transfer; or
(6) Delivery of an uncertificated security to a purchaser occurs when: The issuer registers the purchaser as the registered owner, upon original issue or registration of transfer; or
(7) Another person, other than a securities intermediary, either becomes the registered owner of the uncertificated security on behalf of the purchaser or, having previously become the registered owner, acknowledges that it holds for the purchaser.
(7) Another person, other than a securities intermediary, either becomes the registered owner of the uncertificated security on behalf of the purchaser or, having previously become the registered owner, acknowledges that it holds for the purchaser.
(8) Subsection (b) defines delivery with respect to uncertificated securities. Use of the term “delivery” with respect to uncertificated securities, does, at least on first hearing, seem a bit solecistic. The word “delivery” is, however, routinely used in the securities business in a broader sense than manual tradition. For example, settlement by entries on the books of a clearing corporation is commonly called “delivery,” as in the expression “delivery versus payment.” The diction of this section has the advantage of using the same term for uncertificated securities as for certificated securities, for which delivery is conventional usage. Paragraph (1) of subsection (b) provides that delivery occurs when the purchaser becomes the registered owner of an uncertificated security, either upon original issue or registration of transfer. Paragraph (2) provides for delivery of an uncertificated security through a third person, in a fashion analogous to subsection (a)(2).
Official source: North Dakota Legislative Branch. Reproduced from public-domain North Dakota statutes; confirm against the official source for the current text. Not legal advice.