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Can you summarize MNST 336.8-304?
UNIFORM COMMERCIAL CODE > ENDORSEMENT.
Short Summary
This legal document, Minnesota Statutes 336.8-304, governs the endorsement of securities. It specifies that an endorsement may be in blank or special, with a blank endorsement including an endorsement to bearer. A special endorsement specifies the transferee or the person with the power to transfer the security. A holder can convert a blank endorsement to a special endorsement. The document also states that an endorsement, whether special or in blank, does not constitute a transfer until the delivery of the certificate on which it appears or, if the endorsement is on a separate document, until the delivery of both the document and the certificate. Additionally, it mentions that if a security certificate in registered form is delivered to a purchaser without a necessary endorsement, the purchaser can become a protected purchaser only when the endorsement is supplied. However, against a transferor, a transfer is complete upon delivery, and the purchaser has a specifically enforceable right to have any necessary endorsement supplied. Furthermore, it notes that an endorsement of a security certificate in bearer form may give notice of an adverse claim to the certificate but does not otherwise affect the holder’s right to registration. Finally, the document states that unless otherwise agreed, a person making an endorsement assumes only the obligations provided in section 336.8-108 and not the obligation that the security will be honored by the issuer.
Whom does it apply to?
Holders and purchasers of securities
What does it govern?
Endorsement of securities
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota