§ 12A-8-114. Evidentiary Rules Concerning Certificated Securities.

Evidentiary Rules Concerning Certificated Securities.

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

(1)Unless specifically denied in the pleadings, each signature on a security certificate or in a necessary indorsement is admitted;

(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)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)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.

Added by Laws 1995, c. 242, § 14, eff. Feb. 1, 1996.