Part 9 — Security Certificates, Registers and Transfers Division 1 Interpretation and Application
221 Limited duty of inquiry
has a duty to inquire into adverse claims if
(a) the issuer receives written no tice of an adverse claim at a
time and in a manner that provide the issuer with a
reasonable opportunity to act on it before the issue of a new,
re-issued or re-registered security and the notice discloses
the name and contact information of the claimant, the
registered owner and the issue of which the security is a
part, or
(b) the issuer is deemed to have notice of an adverse claim from
a document that it obtained under section 220.
(2) An issuer may discharge a duty of inquiry by any reasonable
means, including notifying an adverse claimant by registered mail
sent to the address provided by the adverse claimant or, if no such
address has been provided, to the adverse claimant's residence or
regular place of business, that a security has been presented for
registration of transfer by a named person and that the transfer will
be registered unless, no later than 30 days after the date of sending
the notice, the issuer
(a) is served with a restraining order or other order of a court, or
(b) is provided with an indemnity bond sufficient in the issue r's
judgment to protect the issuer and any transfer agent or
other agent of the issuer from any loss that may be incurred
by any of them as a result of complying with the notice of
the adverse claim.
2001 cC-28.1 s221;2022 c16 s3(39)