New Jersey § 12a:8-404
Full text of New Jersey New Jersey Statutes § 12a:8-404, with citation guidance and answers to common questions.
§ 12a:8-404.
a. Except as otherwise provided in 12A:8-406, an issuer is liable for wrongful registration
of transfer if the issuer has registered a transfer of a security to a person not
entitled to it, and the transfer was registered: (1) pursuant to an ineffective indorsement or instruction; (2) after a demand that the issuer not register transfer became effective under subsection
a. of 12A:8-403 and the issuer did not comply with subsection b. of 12A:8-403; (3) after the issuer had been served with an injunction, restraining order, or other
legal process enjoining it from registering the transfer, issued by a court of competent
jurisdiction, and the issuer had a reasonable opportunity to act on the injunction,
restraining order, or other legal process; or (4) by an issuer acting in collusion with the wrongdoer. b. An issuer that is liable for wrongful registration of transfer under subsection
a. of this section on demand shall provide the person entitled to the security with
a like certificated or uncertificated security, and any payments or distributions
that the person did not receive as a result of the wrongful registration. If an overissue would result, the issuer's liability to provide the person with
a like security is governed by 12A:8-210. c. Except as otherwise provided in subsection a. of this section or in a law relating
to the collection of taxes, an issuer is not liable to an owner or other person suffering
loss as a result of the registration of a transfer of a security if registration was
made pursuant to an effective indorsement or instruction.
Frequently Asked Questions About New Jersey § 12a:8-404
What does New Jersey Statutes § 12a:8-404 cover?
Section 12a:8-404 is part of the New Jersey Statutes, the codified statutory law of New Jersey. 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 New Jersey § 12a:8-404?
A common citation format is "New Jersey Statutes § 12a:8-404" (New Jersey). 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 New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 12a:8-404 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey 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 New Jersey.