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Can you summarize MNST 336.8-203?
UNIFORM COMMERCIAL CODE > STALENESS AS NOTICE OF DEFECT OR DEFENSE.
Short Summary
This provision, part of the Minnesota Statutes under the Uniform Commercial Code, applies to purchasers of certificated securities. It states that after an act or event creating a right to immediate performance or setting a date for redemption or exchange, a purchaser is charged with notice of any defect in the security’s issue or defense of the issuer if certain conditions are met. These conditions include the payment or delivery of the security on the specified date, and the purchaser taking the security more than one or two years after the specified date, depending on the circumstances. This provision was repealed in 1995.
Whom does it apply to?
Purchasers of certificated securities
What does it govern?
Staleness as notice of defect or defense
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota