N.D. Cent. Code § 41-08-35
(8-402) Assurance that endorsement or instruction is effective
Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) An issuer may require the following assurance that each necessary endorsement or each instruction is genuine and authorized: In all cases, a guaranty of the signature of the person making an endorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;
(1) An issuer may require the following assurance that each necessary endorsement or each instruction is genuine and authorized: In all cases, a guaranty of the signature of the person making an endorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;
(2) If the endorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign;
(2) If the endorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign;
(3) If the endorsement is made or the instruction is originated by a fiduciary pursuant to subdivision d or e of subsection 1 of section 41-08-07, appropriate evidence of appointment or incumbency;
(3) If the endorsement is made or the instruction is originated by a fiduciary pursuant to subdivision d or e of subsection 1 of section 41-08-07, appropriate evidence of appointment or incumbency;
(4) If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and
(4) If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and
(5) If the endorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.
(5) If the endorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.
(6) An issuer may elect to require reasonable assurance beyond that specified in this section.
(6) An issuer may elect to require reasonable assurance beyond that specified in this section.
(7) In this section: “Appropriate evidence of appointment or incumbency” means: In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within sixty days before the date of presentation for transfer; or
(7) In this section: “Appropriate evidence of appointment or incumbency” means: In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within sixty days before the date of presentation for transfer; or
(8) In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence the issuer reasonably considers appropriate.
(8) In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence the issuer reasonably considers appropriate.
(9) “Guaranty of the signature” means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.
(9) “Guaranty of the signature” means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.
(10) Circumstances may indicate that a necessary signature was unauthorized or was not that of an appropriate person. Such circumstances would be ignored at risk of absolute liability. To minimize that risk the issuer may properly exercise the option given by subsection (b) to require assurance beyond that specified in subsection (a). On the other hand, the facts at hand may reflect only on the rightfulness of the transfer. Such facts do not create a duty of inquiry, because the issuer is not liable to an adverse claimant unless the claimant obtains legal process. See Section 8-404.
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.