{"data":{"id":"us-ky/krs-355.8-403","jurisdiction":"us-ky","citation":"KRS 355.8-403","heading":"Demand that issuer not register transfer.","body":"(1) A person who is an appropriate person to make an indorsement or originate an\ninstruction may demand that the issuer not register transfer of a security by\ncommunicating to the issuer a notification that identifies the registered owner and\nthe issue of which the security is a part and provides an address for communications\ndirected to the person making the demand. The demand is effective only if it is\nreceived by the issuer at a time and in a manner affording the issuer reasonable\nopportunity to act on it.\n(2) If a certificated security in registered form is presented to an issuer with a request to\nregister transfer or an instruction is presented to an issuer with a request to register\ntransfer of an uncertificated security after a demand that the issuer not register\ntransfer has become effective, the issuer shall promptly communicate to the person\nwho initiated the demand at the address provided in the demand and the person who\npresented the security for registration of transfer or initiated the instruction\nrequesting registration of transfer a notification stating that:\n(a) The certificated security has been presented for registration of transfer or the\ninstruction for registration of transfer of the uncertificated security has been\nreceived;\n(b) A demand tha t the issuer not register transfer had previously been received;\nand\n(c) The issuer will withhold registration of transfer for a period of time stated in\nthe notification in order to provide the person who initiated the demand an\nopportunity to obtain legal process or an indemnity bond.\n(3) The period described in subsection (2)(c) of this section may not exceed thirty (30)\ndays after the date of communication of the notification. A shorter period may be\nspecified by the issuer if it is not manifestly unreasonable.\n(4) An issuer is not liable to a person who initiated a demand that the issuer not register\ntransfer for any loss the person suffers as a result of registration of a transfer\npursuant to an effective indorsement or instruction if the person who in itiated the\ndemand does not, within the time stated in the issuer's communication, either:\n(a) Obtain an appropriate restraining order, injunction, or other process from a\ncourt of competent jurisdiction enjoining the issuer from registering the\ntransfer; or\n(b) File with the issuer an indemnity bond, sufficient in the issuer's judgment to\nprotect the issuer and any transfer agent, registrar, or other agent of the issuer\ninvolved from any loss it or they may suffer by refusing to register the\ntransfer.\n(5) This section does not relieve an issuer from liability for registering transfer pursuant\nto an indorsement or instruction that was not effective.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33711","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"e4d0a8c514d56f659007acbe51318f321d17593147bd6dd7c2f7d6799d5172b3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-402","next":"us-ky/krs-355.8-404"},"notice":"GroundRules: Original legal text. Not legal advice."}