Ask Reggi Your Question Now
Can you summarize MNST 336.8-404?
UNIFORM COMMERCIAL CODE > WRONGFUL REGISTRATION.
Short Summary
This legal document, governed by the Minnesota Statutes under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, addresses the issue of wrongful registration of transfer of securities. According to the document, an issuer is liable for wrongful registration if they register a transfer of a security to a person not entitled to it under certain circumstances. These circumstances include an ineffective endorsement or instruction, non-compliance with a demand to not register transfer, registration after being served with an injunction or restraining order, or collusion with the wrongdoer. The issuer’s liability includes providing the rightful person with a like certificated or uncertificated security and any payments or distributions that were not received due to the wrongful registration. The document also states that an issuer is not liable for loss resulting from the registration of a transfer made pursuant to an effective endorsement or instruction, except in specific cases mentioned in subsection (a) or in a law relating to the collection of taxes.
Whom does it apply to?
Issuers of securities
What does it govern?
Wrongful registration of transfer of securities
What are exemptions?
None mentioned
What are the Penalties?
Not specified
Jurisdiction
Minnesota