A securities intermediary that has transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:

1. (1) Took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process; or
2. (2) Acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or
3. (3) In the case of a security certificate that has been stolen, acted with notice of the adverse claim.

Source: L. 96: Entire article R&RE, p. 215, § 2, effective July 1.

Editor's note: This section is similar to former § 4-8-318 as it existed prior to 1996.