The Florida Senate

678.311  Effect of unauthorized indorsement or instruction.--Unless the owner or pledgee has ratified an unauthorized indorsement or instruction or is otherwise precluded from asserting its ineffectiveness:

(1)  He or she may assert its ineffectiveness against the issuer or any purchaser, other than a purchaser for value and without notice of adverse claims, who has in good faith received a new, reissued, or reregistered certificated security on registration of transfer or received an initial transaction statement confirming the registration of transfer, pledge, or release of an equivalent uncertificated security to him or her; and

(2)  An issuer who registers the transfer of a certificated security upon the unauthorized indorsement or who registers the transfer, pledge, or release of an uncertificated security upon the unauthorized instruction is subject to liability for improper registration (s. 678.404).

History.--s. 1, ch. 65-254; s. 1, ch. 87-275; s. 664, ch. 97-102.

Note.--s. 8-311, U.C.C.; supersedes s. 674.25.