O.C.G.A. § 11-8-115 (2019)
Securities intermediary and others not liable to adverse claimant
A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:
(1) Took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or
(2) Acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or
(3) In the case of a security certificate that has been stolen, acted with notice of the adverse claim.
History
Code 1981, § 11-8-115, enacted by Ga. L. 1998, p. 1323, § 1.
Annotations
JUDICIAL DECISIONS Collusion. - Securities broker was not immune from liability for unlawful conversion of a client’s partnership interest which defeated a bank’s security interest since circumstantial evidence was sufficient to show that the broker had actual knowledge of the security interest and
substantially assisted the client in the conversion, and thus that the broker colluded with the client in the conversion. Amegy Bank Nat’l Ass’n v. Deutsche Bank Alex.Brown, 619 Fed. Appx. 923, 2015 U.S. App. LEXIS 13965 (11th Cir. 2015).
RESEARCH REFERENCES U.L.A. Uniform Commercial Code (U.L.A.) § 8115.