11-8-402. Assurance that indorsement or instruction is effective.

An issuer may require the following assurance that each necessary indorsement or each instruction is genuine and authorized:#

1. (1)

   In all cases, a guaranty of the signature of the person making an indorsement or originating an instruction including, in the case of an instruction, reasonable assurance of identity;#

2. (2)

   If the indorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority to sign;#

3. (3)

   If the indorsement is made or the instruction is originated by a fiduciary pursuant to paragraph (4) or (5) of subsection (a) of Code Section 11-8-107, appropriate evidence of appointment or incumbency;#

4. (4)

   If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and#

5. (5)

   If the indorsement is made or the instruction is originated by a person not covered by another provision of this subsection, assurance appropriate to the case corresponding as nearly as may be to the provisions of this subsection.#

An issuer may elect to require reasonable assurance beyond that specified in this Code section.#

In this Code section:#

1. (1)

   “Guaranty of the signature” means a guaranty signed by or on behalf of a person reasonably believed by the issuer to be responsible. An issuer may adopt standards with respect to responsibility if they are not manifestly unreasonable.#

2. (2)

   “Appropriate evidence of appointment or incumbency” means:#

   1. (i)

      In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within 60 days before the date of presentation for transfer; or#

   2. (ii)

      In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by an issuer to be responsible or, in the absence of that document or certificate, other evidence the issuer reasonably considers appropriate.#