Page:United States Statutes at Large Volume 74.djvu/362

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[74 Stat. 322]
[74 Stat. 322]
PUBLIC LAW 86-000—MMMM. DD, 1960

322

PUBLIC LAW 86-584-JULY 5, 1960

[74

ST A T,

Public Law 86-584 July 5, 1960 [H.R. 10021]

District of Columbia Uniform Act for S i m p l i f i cation of Fiduciary S e c u r i t y Transfers.

AN ACT Providing a uniform law for the transfer of securities to and by fiduciaries in the District of Columbia.

Be it enacted by the Senate and House of Representatives United States of America in Congress assembled,

of the

DEFINITIONS

1.- I n this Act, unless the context otherwise requires: (a) "Assignment'- includes any written stock power, bond power, bill of sale, deed, declaration of trust or other instrument of transfer. (b) "Claim of beneficial interest" includes a claim of any interest by a decedent's legatee, distributee, heir or creditor, a beneficiary under a trust, a ward, a beneficial owner of a security registered in the name of a nominee, or a minor owner of a security registered in the name of a custodian, or a claim of any similar interest, whether the claim is asserted by the claimant or by a fiduciary or by any other authorized person on his behalf, and includes a claim that the transfer would be in breach of fiduciary duties. (c) "Corporation" means a private or public corporation, association or trust issuing a security. (d) "Fiduciary" means an executor, administrator, trustee, guardian, committee, conservator, curator, tutor, custodian or nominee. (e) "Person" includes an individual, a corporation, government or governmental subdivision or agency, business trust, festate, trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity. (f) "Security" includes any share of stock, bond, debenture, note or other security issued by a corporation which is registered as to ownership on the books of the corporation. (g) "Transfer" means a change on the books of a corporation in the registered ownership of a security. (h) "Transfer agent^' means a person employed or authorized by a corporation to transfer securities issued by the corporation. SECTION

REGISTRATION IN THE NAME OF A FIDUCIARY

SEC. 2. A corporation or transfer agent registering a security in the name of a person who is a fiduciary or who is described as a fiduciary is not bound to inquire into the existence, extent, or correct description of the fiduciary relationship, and thereafter the corporation and its transfer agent may assume without inquiry that the newly registered owner continues to be the fiduciary until the corporation or transfer agent receives written notice that the fiduciary is no longer acting as such with respect to the particular security. ASSIGNMENT BY A FIDUCIARY

SEC. 3. Except as otherwise provided in this Act, a corporation or transfer agent making a transfer of a security pursuant to an assignment by a fiduciary— (a) may assume without inquiry that the assignment, even though to the fiduciary himself or his nominee, is within his authority and capacity and is not in breach of his fiduciary duties; (b) may assume without inquiry that the fiduciary has complied with any controlling instrument and with the law of the