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Can you summarize MNST 336.8-405?
UNIFORM COMMERCIAL CODE > REPLACEMENT OF LOST, DESTROYED, OR WRONGFULLY TAKEN SECURITY CERTIFICATE.
Short Summary
This legal provision, found in the Minnesota Statutes under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, governs the process for replacing lost, destroyed, or wrongfully taken security certificates. It applies to owners of certificated securities, whether in registered or bearer form. If an owner claims that their certificate has been lost, destroyed, or wrongfully taken, the issuer is required to issue a new certificate under certain conditions. These conditions include the owner making a request before the issuer has notice of the certificate being acquired by a protected purchaser, filing an indemnity bond with the issuer, and satisfying other reasonable requirements imposed by the issuer. If a protected purchaser of the original certificate presents it for registration of transfer after the issue of a new certificate, the issuer is obligated to register the transfer unless it would result in an overissue. The issuer’s liability in such cases is governed by section 336.8-210. The issuer may also recover the new certificate from the person to whom it was issued or any person taking under that person, except a protected purchaser. This provision was repealed in 1995, but the historical information is provided for reference.
Whom does it apply to?
Owners of certificated securities
What does it govern?
Replacement of lost, destroyed, or wrongfully taken security certificate
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota