N.D. Cent. Code § 10-15-24
This is the official text of N.D. Cent. Code § 10-15-24, part of North Dakota’s Cent. Code — part of the compiled statutory law of North Dakota, published by the state as "Cent. Code." Browse the sections below, each linked to its official government source.
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10-15-24. Liability of cooperative for wrongful transfers of its securities
Official statutory text
10-15-24. Liability of cooperative for wrongful transfers of its securities
1. A cooperative is not liable for acting upon wrongful transfers of its securities unless it
has notice that the certificate was not transferred by a proper person or has notice that
the transfer was wrongful.
2. As used in this section:
a. "Proper person" means the registered owner or last prior transferee, whether or
not described as fiduciary for another, or the person's authorized agent, legal
representative, or successor to the person's interest by operation of law.
b. "Transfer" includes a redemption or recall of stock.
c. "Wrongful transfer" means a transfer which is in excess of the authorization or
capacity of the transferor, or which is made in breach of the transferor's fiduciary
duty.
1. A cooperative is not liable for acting upon wrongful transfers of its securities unless it
has notice that the certificate was not transferred by a proper person or has notice that
the transfer was wrongful.
2. As used in this section:
a. "Proper person" means the registered owner or last prior transferee, whether or
not described as fiduciary for another, or the person's authorized agent, legal
representative, or successor to the person's interest by operation of law.
b. "Transfer" includes a redemption or recall of stock.
c. "Wrongful transfer" means a transfer which is in excess of the authorization or
capacity of the transferor, or which is made in breach of the transferor's fiduciary
duty.
Status: in_force · Read it on the official government site
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