Uniform Commercial Code

U.C.C. - ARTICLE 8 - INVESTMENT SECURITIES
..PART 1. SHORT TITLE AND GENERAL MATTERS

§ 8-105. Certificated Securities Negotiable; Statements and Instructions Not Negotiable; Presumptions.

(1) Certificated securities governed by this Article are negotiable instruments.

(2) Statements (Section 8-408), notices, or the like, sent by the issuer of uncertificated securities and instructions (Section 8-308) are neither negotiable instruments nor certificated securities.

(3) In any action on a security:

• (a) unless specifically denied in the pleadings, each signature on a certificated security, in a necessary indorsement, on an initial transaction statement, or on an instruction, is admitted;
• (b) if the effectiveness of a signature is put in issue, the burden of establishing it is on the party claiming under the signature, but the signature is presumed to be genuine or authorized;
• (c) if signatures on a certificated security are admitted or established, production of the security entitles a holder to recover on it unless the defendant establishes a defense or a defect going to the validity of the security;
• (d) if signatures on an initial transaction statement are admitted or established, the facts stated in the statement are presumed to be true as of the time of its issuance; and
• (e) after it is shown that a defense or defect exists, the plaintiff has the burden of establishing that he or some person under whom he claims is a person against whom the defense or defect is ineffective (Section 8-202).

As amended in 1977.

See Appendix I for material relating to changes made in text in 1977.