Effect of Signature of Authenticating Trustee, Registrar or

Transfer Agent.

(1)A person placing his signature upon a security as authenticating trustee, registrar, transfer agent or the like warrants to a purchaser for value without notice of the particular defect that

(a)The security is genuine; and

(b)His own participation in the issue of the security is within his capacity and within the scope of the authorization received by him from the issuer; and

(c)He has reasonable grounds to believe that the security is in the form and within the amount the issuer is authorized to issue.

(2)Unless otherwise agreed, a person by so placing his signature does not assume responsibility for the validity of the security in other respects. ---------CHAPTER 3 PURCHASE