KRS 355.8-402: Assurance that indorsement or instruction is effective.

(1) An issuer may require the following assurance that each necessary indorsement or

each instruction is genuine and authorized:

(a) In all cases, a guaranty of the signature of the person making an indorsement

or originating an instruction including, in the c ase of an instruction,

reasonable assurance of identity;

(b) If the indorsement is made or the instruction is originated by an agent,

appropriate assurance of actual authority to sign;

(c) If the indorsement is made or the instruction is originated by a fi duciary

pursuant to KRS 355.8 -107(1)(d) or (1)(e), appropriate evidence of

appointment or incumbency;

(d) If there is more than one fiduciary, reasonable assurance that all who are

required to sign have done so; and

(e) If the indorsement is made or the in struction is originated by a person not

covered by another provision of this subsection, assurance appropriate to the

case corresponding as nearly as may be to the provisions of this subsection.

(2) An issuer may elect to require reasonable assurance beyon d that specified in this

section.

(3) In this section:

(a) "Guaranty of the signature" means a guaranty signed by or on behalf of a

person reasonably believed by the issuer to be responsible. An issuer may

adopt standards with respect to responsibility if they are not manifestly

unreasonable.

(b) "Appropriate evidence of appointment or incumbency" means:

1. In the case of a fiduciary appointed or qualified by a court, a certificate

issued by or under the direction or supervision of the court or an officer

thereof and dated within sixty (60) days before the date of presentation

for transfer; or

2. In any other case, a copy of a document showing the appointment or a

certificate issued by or on behalf of a person reasonably believed by an

issuer to be responsible or, in the absence of that document or certificate,

other evidence the issuer reasonably considers appropriate.