1. (a) Except as otherwise provided in subsections (b) and (c), a purchaser of a certificated or uncertificated security acquires all rights in the security that the transferor had or had power to transfer.
2. (b) A purchaser of a limited interest acquires rights only to the extent of the interest purchased.
3. (c) A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve its position by taking from a protected purchaser.

Source: SL 1998, ch 284 , § 1; SL 2000, ch 231 , § 18.