The following rules apply in an action on a certificated security against the issuer:

1. (1) Unless specifically denied in the pleadings, each signature on a

   security certificate or in a necessary indorsement is admitted;

2. (2) If the effectiveness of a signature is put in issue, the

   burden of establishing effectiveness is on the party claiming under the signature, but the signature is presumed to be genuine or authorized;

3. (3) If signatures on a

   security certificate are admitted or established, production of the certificate entitles a holder to recover on it unless the defendant establishes a defense or a defect going to the validity of the security; and

4. (4) If it is shown that a defense or defect exists, the plaintiff has the

   burden of establishing that the plaintiff or some person under whom the plaintiff claims is a person against whom the defense or defect cannot be asserted.

   Oklahoma Code Comment

   Section 8-114 is substantially similar to pre-revision subsection 8-105(3). Because certificated securities are no longer "instruments," as defined in Section 3-104 and Section 9-105, pre-revision subsection 8-105(1), which characterized them as negotiable instruments, has been deleted. See Official Revision Note 8. In addition, revised Article 8 has deleted the former statutory requirements concerning transaction statements, referenced in pre-revision subsection 8-105(2) and detailed in former Section 8-408. See Official Revision Note 4 for the rationale behind these revisions.

   Prior Statutory Provisions:

   Pre-revision UCC § 8-105.

Laws 1995, SB 522, c. 242, § 14, eff. February 1, 1996.