ARTICLE 8
INVESTMENT SECURITIES
11-8-114. Evidentiary rules concerning certificated securities.
The following rules apply in an action on a certificated security against the issuer:
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Unless specifically denied in the pleadings, each signature on a security certificate or in a necessary indorsement is admitted.
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If the effectiveness of a signature is put in issue, the burden of establishing effectiveness is on the party claiming under the signature, but the signature is presumed to be genuine or authorized.
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If signatures on a security certificate are admitted or established, production of the certificate entitles a holder to recover on it unless the defendant establishes a defense or a defect going to the validity of the security.
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If it is shown that a defense or defect exists, the plaintiff has the burden of establishing that the plaintiff or some person under whom the plaintiff claims is a person against whom the defense or defect cannot be asserted.
(Code 1981, §11-8-114, enacted by Ga. L. 1998, p. 1323, § 1.)
RESEARCH REFERENCES
U.L.A.
- Uniform Commercial Code (U.L.A.)
§
8-114.
ALR.
- Right or duty of corporation to refuse to transfer stock on presentation of properly indorsed certificate, because of conflicting rights or claims of one other than transferee, 75 A.L.R.2d 746.
