KRS 355.8-115: Securities intermediary and others not liable to adverse claimant.

A securities intermediary that has transferred a financial asset pursuant to an effective

entitlement order, or a broker or other agent or bailee that has dealt with a financial asset

at the direction of its customer or principal, is not liable to a person having an adverse

claim to the financial asset, unless the securities intermediary, or broker or other agent or

bailee:

(1) Took the action after it had been served with an injunction, restraining order, or

other legal process enjoining it from doing so, issued by a court of competent

jurisdiction, and had a reasonable opportunity to act on the injunction, restraining

order, or other legal process; or

(2) Acted in collusion with the wrongdoer in violating the rights of the adverse

claimant; or

(3) In the c ase of a security certificate that has been stolen, acted with notice of the

adverse claim.