{"data":{"id":"us-ky/krs-355.8-404","jurisdiction":"us-ky","citation":"KRS 355.8-404","heading":"Wrongful registration.","body":"(1) Except as otherwise provided in KRS 355.8 -406, an issuer is liable for wrongful\nregistration of transfer if the issuer has registered a transfer of a security to a person\nnot entitled to it, and the transfer was registered:\n(a) Pursuant to an ineffective indorsement or instruction;\n(b) After a demand that the issuer not register transfer became effective under\nKRS 355.8-403(1) and the issuer did not comply with KRS 355.8-403(2);\n(c) After the issuer had been served with an injunction, restraining order, or other\nlegal process enjoining it from registering the transfer, issued by a court of\ncompetent jurisdiction, and the issuer had a reasonable opportunity to act on\nthe injunction, restraining order, or other legal process; or\n(d) By an issuer acting in collusion with the wrongdoer.\n(2) An issuer that is liable for wrongful registration of transfer under subsection (1) of\nthis section on demand shall provide the person entitled to the security with a like\ncertificated or uncertificated security, and any payme nts or distributions that the\nperson did not receive as a result of the wrongful registration. If an overissue would\nresult, the issuer's liability to provide the person with a like security is governed by\nKRS 355.8-210.\n(3) Except as otherwise provided in subsection (1) of this section or in a law relating to\nthe collection of taxes, an issuer is not liable to an owner or other person suffering\nloss as a result of the registration of a transfer of a security if registration was made\npursuant to an effective indorsement or instruction.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33712","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"92d3ab3ccb0ef4ffffae128b39e15acfc31917cdf5a64277275600a2f87b3523","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-403","next":"us-ky/krs-355.8-405"},"notice":"GroundRules: Original legal text. Not legal advice."}