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Can you summarize MNST 336.8-105?
UNIFORM COMMERCIAL CODE > NOTICE OF ADVERSE CLAIM.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, specifically addresses the concept of ‘Notice of Adverse Claim’. It outlines the circumstances under which a person can be considered to have notice of an adverse claim. These circumstances include having actual knowledge of the adverse claim, being aware of facts that indicate a significant probability of the adverse claim’s existence and deliberately avoiding information, or having a duty to investigate the existence of an adverse claim. The document also clarifies that knowledge of a representative transferring a financial asset does not impose a duty of inquiry into the rightfulness of the transaction, except when the transfer is for the representative’s individual benefit or in breach of duty. Additionally, it states that certain acts or events related to security certificates do not, by themselves, constitute notice of an adverse claim. The document further explains that a purchaser of a certificated security may have notice of an adverse claim based on specific conditions mentioned. It concludes by stating that filing a financing statement under Article 9 does not constitute notice of an adverse claim to a financial asset.
Whom does it apply to?
Persons involved in financial transactions
What does it govern?
Notice of Adverse Claim
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota