Part 9 — Security Certificates, Registers and Transfers Division 1 Interpretation and Application
222 Inquiry into adverse claim
from a document that is obtained under section 220 or has received
notice of an adverse claim under section 221(1), if a security
presented for registration is endorsed by the appropriate person, the
issuer has no duty to inquire into adverse claims and, in particular,
(a) an issuer registering a sec urity in the name of a person who
is a fiduciary or who is described as a fiduciary is not bound
to inquire into the existence, extent or correct description of
the fiduciary relationship, and the issuer may assume
without inquiry that the newly registered owner continues to
be the fiduciary until the issuer receives written notice that
the fiduciary is no longer acting as such with respect to the
particular security,
(b) an issuer registering a transfer on an endorsement by a
fiduciary has no duty to inquire into whether the transfer is
made in compliance with the document that is the source of
the fiduciary's power or with the law of the jurisdiction
governing the fiduciary relationship, and
(c) an issuer is deemed not to have notice of the contents of a
court record or a registered document even if the record or
document is in the issuer's possession if the transfer is made
on the endorsement of a fiduciary to the fiduciary
specifically or to the fiduciary's nominee.