Vermont § 306 - § 8—306.

§ 306. § 8—306.

• Effect of guaranteeing signature, indorsement, or instruction (a) A person who guarantees a signature of an indorser of a security certificate warrants
  that at the time of signing: (1) the signature was genuine; (2) the signer was an appropriate person to indorse, or if the signature is by an agent,
  the agent had actual authority to act on behalf of the appropriate person; and (3) the signer had legal capacity to sign. (b) A person who guarantees a signature of the originator of an instruction warrants that
  at the time of signing: (1) the signature was genuine; (2) 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 (3) the signer had legal capacity to sign. (c) A person who specially guarantees the signature of an originator of an instruction
  makes the warranties of a signature guarantor under subsection (b) of this section
  and also warrants that at the time the instruction is presented to the issuer: (1) the person specified in the instruction as the registered owner of the uncertificated
  security will be the registered owner; and (2) 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. (d) A guarantor under subsections (a) and (b) of this section or a special guarantor under
  subsection (c) of this section does not otherwise warrant the rightfulness of the
  transfer. (e) A person who guarantees an indorsement of a security certificate makes the warranties
  of a signature guarantor under subsection (a) of this section and also warrants the
  rightfulness of the transfer in all respects. (f) A person who guarantees an instruction requesting the transfer of an uncertificated
  security makes the warranties of a special signature guarantor under subsection (c)
  of this section and also warrants the rightfulness of the transfer in all respects. (g) An issuer may not require a special guaranty of signature, a guaranty of indorsement,
  or a guaranty of instruction as a condition to registration of transfer. (h) 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 indorser or originator of an instruction whose
  signature, indorsement, or instruction has been guaranteed is liable to a guarantor
  for any loss suffered by the guarantor as a result of breach of the warranties of
  the guarantor. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997.)