{"data":{"id":"us-ky/krs-355.8-107","jurisdiction":"us-ky","citation":"KRS 355.8-107","heading":"Whether indorsement, instruction, or entitlement order is effective.","body":"(1) \"Appropriate person\" means:\n(a) With respect to an indorsement, the person specified by a security certificate\nor by an effective special indorsement to be entitled to the security;\n(b) With respect to an instruction, the registered owner of an uncertifica ted\nsecurity;\n(c) With respect to an entitlement order, the entitlement holder;\n(d) If the person designated in paragraph (a), (b), or (c) of this subsection is\ndeceased, the designated person's successor taking under other law or the\ndesignated person's p ersonal representative acting for the estate of the\ndecedent; or\n(e) If the person designated in paragraph (a), (b), or (c) of this subsection lacks\ncapacity, the designated person's guardian, conservator, or other similar\nrepresentative who has power unde r other law to transfer the security or\nfinancial asset.\n(2) An indorsement, instruction, or entitlement order is effective if:\n(a) It is made by the appropriate person;\n(b) It is made by a person who has power under the law of agency to transfer the\nsecurity or financial asset on behalf of the appropriate person, including, in the\ncase of an instruction or entitlement order, a person who has control under\nKRS 355.8-106(3)(b) or (4)(b); or\n(c) The appropriate person has ratified it or is otherwise precluded  from asserting\nits ineffectiveness.\n(3) An indorsement, instruction, or entitlement order made by a representative is\neffective even if:\n(a) The representative has failed to comply with a controlling instrument or with\nthe law of the state having jurisdic tion of the representative relationship,\nincluding any law requiring the representative to obtain court approval of the\ntransaction; or\n(b) The representative's action in making the indorsement, instruction, or\nentitlement order or using the proceeds of the transaction is otherwise a breach\nof duty.\n(4) If a security is registered in the name of or specially indorsed to a person described\nas a representative, or if a securities account is maintained in the name of a person\ndescribed as a representative, an indorsement, instruction, or entitlement order made\nby the person is effective even though the person is no longer serving in the\ndescribed capacity.\n(5) Effectiveness of an indorsement, instruction, or entitlement order is determined as\nof the date the indorsement, instruction, or entitlement order is made, and an\nindorsement, instruction, or entitlement order does not become ineffective by reason\nof any later change of circumstances.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33668","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"8f2712b50b8e13c6c772a19e082fc666c3f72c48b17926d49f73903c935516e0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-106","next":"us-ky/krs-355.8-108"},"notice":"GroundRules: Original legal text. Not legal advice."}