{"data":{"id":"us-ky/krs-355.8-106","jurisdiction":"us-ky","citation":"KRS 355.8-106","heading":"Control.","body":"(1) A purchaser has \"control\" of a certificated security in bearer form if the certificated\nsecurity is delivered to the purchaser.\n(2) A purchaser has \"control\" of a certificated security in registered form if the\ncertificated security is delivered to the purchaser, and:\n(a) The certificate is indorsed to the purchaser or in blank by an effective\nindorsement; or\n(b) The certificate is registered in the name of the purchaser, upon original issue\nor registration of transfer by the issuer.\n(3) A purchaser has \"control\" of an uncertificated security if:\n(a) The uncertificated security is delivered to the purchaser; or\n(b) The issuer has agreed that it will comply with instructions originated by the\npurchaser without further consent by the registered owner.\n(4) A purchaser has \"control\" of a security entitlement if:\n(a) The purchaser becomes the entitlement holder;\n(b) The securities intermediary has agreed that it will comply with entitlement\norders originated by the purchaser without further consent by the entitlem ent\nholder; or\n(c) Another person, other than the transferor to the purchaser of an interest in the\nsecurity entitlement:\n1. Has control of the se curity entitlement and acknowledges that it has\ncontrol on behalf of the purchaser; or\n2. Obtains control of the security entitlement after having acknowledged\nthat it will obtain control of the security entitlement on behalf of the\npurchaser.\n(5) If an in terest in a security entitlement is granted by the entitlement holder to the\nentitlement holder's own securities intermediary, the securities intermediary has\ncontrol.\n(6) A purchaser who has satisfied the requirements of subsection (3) or (4) of this\nsection has control, even if the registered owner in the case of subsection (3) of this\nsection or the entitlement holder in the case of subsection (4) of this section retains\nthe right to make substitutions for the uncertificated security or security entitlement,\nto originate instructions or entitlement orders to the issuer or securities\nintermediary, or otherwise to deal with the uncertificated security or security\nentitlement.\n(7) An issuer or a securities intermediary may not enter into an agreement of the kind\ndescribed in subsection (3)(b) or (4)(b) of this section without the consent of the\nregistered owner or entitlement holder, but an issuer or a securities intermediary is\nnot required to enter into such an agreement even though the registered owner or\nentitlement holder so directs. An issuer or securities intermediary that has entered\ninto such an agreement is not required to confirm the existence of the agreement to\nanother party unless requested to do so by the registered owner or entitlement\nholder.\n(8) A person that has control under this section is not required to acknowledge that it\nhas control on behalf of a purchaser.\n(9) If a person acknowledges that it has or will obtain control on behalf of a purchaser,\nunless the person otherwise agrees or la w other than this article or Article 9 of this\nchapter otherwise provides, the person does not own any duty to the purchaser and\nis not required to confirm the acknowledgment to any other person.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55665","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"9da6bf63e5c4c39e3e9b01f1b703f78c44b39b37bebf8966ee89f3b87d54a304","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-105","next":"us-ky/krs-355.8-107"},"notice":"GroundRules: Original legal text. Not legal advice."}