{"data":{"id":"us-ky/krs-355.8-306","jurisdiction":"us-ky","citation":"KRS 355.8-306","heading":"Effect of guaranteeing signature, indorsement, or instruction.","body":"(1) A person who guarantees a signature of an indorser of a security certificate warrants\nthat at the time of signing:\n(a) The signature was genuine;\n(b) The signer was an appropriate person to indorse, or if the signature is by an\nagent, the agent had actual authority to act on behalf of the appropriate person;\nand\n(c) The signer had legal capacity to sign.\n(2) A person who guarantees a signature of the originator of an instruction warrants that\nat the time of signing:\n(a) The signature was genuine;\n(b) The si gner was an appropriate person to originate the instruction, or if the\nsignature is by an agent, the agent had actual authority to act on behalf of the\nappropriate person, if the person specified in the instruction as the registered\nowner was, in fact, the  registered owner, as to which fact the signature\nguarantor does not make a warranty; and\n(c) The signer had legal capacity to sign.\n(3) A person who specially guarantees the signature of an originator of an instruction\nmakes the warranties of a signature guarantor under subsection (2) of this section\nand also warrants that at the time the instruction is presented to the issuer:\n(a) The person specified in the instruction as the registered owner of the\nuncertificated security will be the registered owner; and\n(b) The transfer of the uncertificated security requested in the instruction will be\nregistered by the issuer free from all liens, security interests, restrictions, and\nclaims other than those specified in the instruction.\n(4) A guarantor under subsecti ons (1) and (2) of this section or a special guarantor\nunder subsection (3) of this section does not otherwise warrant the rightfulness of\nthe transfer.\n(5) A person who guarantees an indorsement of a security certificate makes the\nwarranties of a signatur e guarantor under subsection (1) of this section and also\nwarrants the rightfulness of the transfer in all respects.\n(6) A person who guarantees an instruction requesting the transfer of an uncertificated\nsecurity makes the warranties of a special signatur e guarantor under subsection (3)\nof this section and also warrants the rightfulness of the transfer in all respects.\n(7) An issuer may not require a special guaranty of signature, a guaranty of\nindorsement, or a guaranty of instruction as a condition to registration of transfer.\n(8) The warranties under this section are made to a person taking or dealing with the\nsecurity in reliance on the guaranty, and the guarantor is liable to the person for loss\nresulting from their breach. An indorser or originator of an instruction whose\nsignature, indorsement, or instruction has been guaranteed is liable to a guarantor\nfor any loss su ffered by the guarantor as a result of breach of the warranties of the\nguarantor.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33693","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"0b880add388f3dd16004f712539247f8d0c897431b2242f06f4d5e6b646aa413","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-305","next":"us-ky/krs-355.8-307"},"notice":"GroundRules: Original legal text. Not legal advice."}