70A-8-203 - Staleness as notice of defect or defense.
70A-8-203. Staleness as notice of defect or defense.
After an act or event, other than a call that has been revoked, creating a right to immediateperformance of the principal obligation represented by a certificated security or setting a date onor after which the security is to be presented or surrendered for redemption or exchange, apurchaser is charged with notice of any defect in its issue or defense of the issuer, if the act orevent:
(1) requires the payment of money, the delivery of a certificated security, the registrationof transfer of an uncertificated security, or any of them on presentation or surrender of thesecurity certificate, the money or security is available on the date set for payment or exchange,and the purchaser takes the security more than one year after that date; or
(2) is not covered by Subsection (1) and the purchaser takes the security more than twoyears after the date set for surrender or presentation or the date on which performance becamedue.
Repealed and Re-enacted by Chapter 204, 1996 General Session