Staleness as Notice of Defects or Defenses

(1)After an act or event which creates a right to immediate performance of the principal obligation evidenced by the security or which sets a date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is charged with notice of any defect in its issue or defense of the issuer

(a)If the act or event is one requiring the payment of money or the delivery of securities or both on presentation or surrender of the security and such funds or securities are available on the date set for payment or exchange and he takes the security more than one year after that date; and

(b)If the act or event is not covered by paragraph

(a)and he takes the security more than two years after the date set for surrender or presentation or the date on which such performance became due. COL120106 DIV. 8 INVESTMENT SECURITIES

(2)A call which has been revoked is not within subdivision (1).