Duty of issuer to register transfer.

(1) Under the terms of the security the person seeking registration of transfer is eligible to have the security registered in its name; (2) The endorsement or instruction is made by the appropriate person or by an agent who has actual authority to act on behalf of the appropriate person; (3) Reasonable assurance is given as provided in section 42a-8-402 that the endorsement or instruction is genuine and authorized; (4) Any applicable law relating to the collection of taxes has been complied with; (5) The transfer does not violate any restriction on transfer imposed by the issuer in accordance with section 42a-8-204 ; (6) A demand that the issuer not register transfer has not become effective under section 42a-8-403 , or the issuer has complied with subsection (b) of section 42a-8-403 but no legal process or indemnity bond is obtained as provided in subsection (d) of section 42a-8-403 ; and (7) The transfer is in fact rightful or is to a protected purchaser. (b) If an issuer is under a duty to register a transfer of a security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person's principal for loss resulting from unreasonable delay in registration or failure or refusal to register the transfer. Cited. 6 CA 530.