Duty of Issuer to Register Transfer

(1)Where a security in registered form is presented to the issuer with a request to register transfer, the issuer is under a duty to register the transfer as requested if

(a)The security is indorsed by the appropriate person or persons (Section 8308); and

(b)Reasonable assurance is given that those indorsements are genuine and effective (Section 8402); and

(c)The issuer has no duty to inquire into adverse claims or has discharged any such duty (Section 8403); and

(d)Any applicable law relating to the collection of taxes has been complied with.

(2)Where an issuer is under a duty to register a transfer of a security the issuer is liable to the person presenting it for registration or his COL120106 DIV. 8 INVESTMENT SECURITIES principal for loss resulting from any unreasonable delay in registration or from failure or refusal to register the transfer, but in any such case the plaintiff must allege and prove that the transfer requested was in fact rightful or that he was a bona fide purchaser.