Nevada § 104.8306 - Effect of guaranteeing signature, endorsement or instruction

§ 104.8306. Effect of guaranteeing signature, endorsement or instruction

1. A person who guarantees a signature of an endorser of a security certificate warrants

that at the time of signing: (a) The signature was genuine; (b) The signer was an appropriate person to endorse, or if the signature is by an

agent, the agent had actual authority to act on behalf of the appropriate person;

and (c) The signer had legal capacity to sign. 2. A person who guarantees a signature of the originator of an instruction warrants

that at the time of signing: (a) The signature was genuine; (b) The signer was an appropriate person to originate the instruction, or if the signature

is by an agent, the agent had actual authority to act on behalf of the appropriate

person, if the person specified in the instruction as the registered owner was, in

fact, the registered owner, as to which fact the signature guarantor does not make

a warranty; and (c) The signer had legal capacity to sign. 3. A person who specially guarantees the signature of the originator of an instruction

makes the warranties of a guarantor under subsection 2 and also warrants that at the

time the instruction is presented to the issuer: (a) The person specified in the instruction as the registered owner of the uncertificated

security will be the registered owner; and (b) The transfer of the uncertificated security requested in the instruction will

be registered by the issuer free from all liens, security interests, restrictions

and claims other than those specified in the instruction. 4. A guarantor under subsections 1 and 2 or a special guarantor under subsection 3

does not otherwise warrant the rightfulness of the transfer. 5. A person who guarantees an endorsement of a security certificate makes the warranties

of a guarantor under subsection 1 and also warrants the rightfulness of the transfer

in all respects. 6. A person who guarantees an instruction requesting the transfer of an uncertificated

security makes the warranties of a special guarantor under subsection 3 and also warrants

the rightfulness of the transfer in all respects. 7. An issuer may not require a special guaranty of signature, a guaranty of endorsement

or a guaranty of instruction as a condition to registration of transfer. 8. The warranties under this section are made to a person taking or dealing with the

security in reliance on the guaranty, and the guarantor is liable to the person for

loss resulting from their breach. An endorser or originator of an instruction whose signature, endorsement or instruction

has been guaranteed is liable to a guarantor for any loss suffered by the guarantor

as a result of a breach of the warranties of the guarantor.