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Can you summarize MNST 336.8-106?
UNIFORM COMMERCIAL CODE > CONTROL.
Short Summary
This legal document, Minnesota Statutes 336.8-106, governs the concept of ‘control’ in relation to certificated and uncertificated securities. It outlines the conditions under which a purchaser has control over a certificated security in bearer form, registered form, or an uncertificated security. The document also specifies the requirements for control of a security entitlement. It further clarifies that if an interest in a security entitlement is granted by the entitlement holder to their own securities intermediary, the securities intermediary has control. The document highlights that a purchaser who has satisfied the requirements for control retains control, even if the registered owner or entitlement holder retains certain rights. The document prohibits issuers or securities intermediaries from entering into certain agreements without the consent of the registered owner or entitlement holder. However, issuers or securities intermediaries are not required to confirm the existence of such agreements unless requested by the registered owner or entitlement holder.
Whom does it apply to?
Purchasers of certificated and uncertificated securities, issuers, and securities intermediaries
What does it govern?
Control of certificated and uncertificated securities
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota