2025 Session
Last amended: 2024 session
§ 336.8-303 — Protected Purchaser
Plain-Language Summary
A 'protected purchaser' is a person who gives value, does not have notice of an adverse claim, and obtains control of the security. A protected purchaser acquires the security free of all adverse claims.
336.8-303 1995 c 194 art 1 s 53
336.8-303 PROTECTED PURCHASER.
(a) “Protected purchaser” means a purchaser of a certificated or uncertificated security, or of an interest therein, who:
(1) gives value;
(2) does not have notice of any adverse claim to the security; and
(3) obtains control of the certificated or uncertificated security.
(b) A protected purchaser also acquires its interest in the security free of any adverse claim.
History:
1995 c 194 art 1 s 29; 2024 c 93 art 8 s 5
History: History: 1995 c 194 art 1 s 29; 2024 c 93 art 8 s 5
Practical Notes
If you buy securities in good faith, pay for them, and get control, you take them free of anyone else’s competing claims.