U.C.C. - ARTICLE 8 - INVESTMENT SECURITIES
..PART 3. TRANSFER
§ 8-302. "Bona Fide Purchaser"; "Adverse Claim"; Title Acquired by Bona Fide Purchaser.
(1) A "bona fide purchaser" is a purchaser for value in good faith and without notice of any adverse claim:
- (a) who takes delivery of a certificated security in bearer form or in registered form, issued or indorsed to him or in blank;
- (b) to whom the transfer, pledge, or release of an uncertificated security is registered on the books of the issuer; or
- (c) to whom a security is transferred under the provisions of paragraph (c), (d)(i), or (g) of Section 8-313(1).
(2) "Adverse claim" includes a claim that a transfer was or would be wrongful or that a particular adverse person is the owner of or has an interest in the security.
(3) A bona fide purchaser in addition to acquiring the rights of a purchaser (Section 8-301) also acquires his interest in the security free of any adverse claim.
(4) Notwithstanding Section 8-301(1), the transferee of a particular certificated security who has been a party to any fraud or illegality affecting the security, or who as a prior holder of that certificated security had notice of an adverse claim, cannot improve his position by taking from a bona fide purchaser.
As amended in 1977.
See Appendix I for material relating to changes made in text in 1977.
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