Colorado § 4-8-205 - Effect of unauthorized signature on security certificate.
Full text of Colorado Colorado Revised Statutes § 4-8-205 — Effect of unauthorized signature on security certificate., with citation guidance and answers to common questions.
§ 4-8-205. Effect of unauthorized signature on security certificate.
An unauthorized signature placed on a security certificate before or in the course of issue is ineffective, but the signature is effective in favor of a purchaser for value of the certificated security if the purchaser is without notice of the lack of authority and the signing has been done by:
(1) An authenticating trustee, registrar, transfer agent, or other person entrusted by the issuer with the signing of the security certificate or of similar security certificates, or the immediate preparation for signing of any of them; or
(2) An employee of the issuer, or of any of the persons listed in paragraph (1) of this section, entrusted with responsible handling of the security certificate.
Source: L. 96: Entire article R&RE, p. 218, § 2, effective July 1.
Editor's note: This section is similar to former § 4-8-205 as it existed prior to 1996.
ANNOTATION
Annotator's note. The following annotations include cases decided under former provisions similar to this section.
Where transferees are purchasers for value without notice of lack of authority, and the signing is done by the secretary of the issuer who is an employee entrusted with responsible handling of securities, it is readily apparent that facsimile signatures are effective against the issuer, and therefore, the certificates are genuine even though the signatures of the president and secretary of the issuer are unauthorized. Dempsey-Tegeler & Co. v. Otis Oil & Gas Corp., 293 F. Supp. 1383 (D. Colo. 1968).
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 4-8-205
What does Colorado Revised Statutes § 4-8-205 cover?
Section 4-8-205 ("Effect of unauthorized signature on security certificate.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 4-8-205?
A common citation format is "Colorado Revised Statutes § 4-8-205" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 4-8-205 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.