NRS 104.8404
Wrongful registration.


1.

Except as otherwise provided in NRS 104.8406, an issuer is liable for wrongful registration of transfer if the issuer has registered a transfer of a security to a person not entitled to it, and the transfer was registered:

(a)

Pursuant to an ineffective endorsement or instruction;

(b)

After a demand that the issuer not register transfer became effective under subsection 1 of NRS 104.8403 and the issuer did not comply with subsection 2 of NRS 104.8403;

(c)

After the issuer had been served with an injunction, restraining order or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the injunction, restraining order or other legal process; or

(d)

By an issuer acting in collusion with the wrongdoer.

2.

An issuer that is liable for wrongful registration of transfer under subsection 1 on demand shall provide the person entitled to the security with a like certificated or uncertificated security and any payments or distributions that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer’s liability to provide the person with a like security is governed by NRS 104.8210.

3.

Except as otherwise provided in subsection 1 or in a law relating to the collection of taxes, an issuer is not liable to an owner or any other person suffering loss as a result of the registration of transfer of a security if registration was made pursuant to an effective endorsement or instruction.

Source: Section 104.8404 — Wrongful registration., https://www.­leg.­state.­nv.­us/NRS/NRS-104.­html#NRS104Sec8404.

Last Updated

Jun. 24, 2021

§ 104.8404’s source at nv​.us