(760 ILCS 70/0.01) (from Ch. 32, par. 439.49)
Sec. 0.01.
Short title.
This Act may be cited as the
Fiduciary Transfer of Securities Act.
(Source: P.A. 86-1324.)
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(760 ILCS 70/1) (from Ch. 32, par. 439.50)
Sec. 1.
Definitions.
In this Act unless the context requires otherwise:
(a) "Assignment" includes any written stock power, bill of sale, deed,
declaration of trust or other instrument of transfer.
(b) "Beneficial interest" includes the interest of a decedent's legatee,
distributee, heir or creditor, of a beneficiary under a trust, of a ward,
of a beneficial owner of a security registered in the name of a nominee, or
of a minor owner of a security registered in the name of a custodian, or
any similar interest.
(c) "Corporation" means a corporation (private, public or municipal)
association or trust organized or created under the laws of this State and
issuing a security subject to this Act, and includes the transfer agents
and registrars of any of its securities.
(d) "Fiduciary" includes an executor, administrator, trustee, guardian,
committee, conservator, curator, tutor, custodian or nominee.
(e) "Person" includes a firm or corporation.
(f) "Security" includes any share of stock, bond, debenture, note or
other security of a corporation which is registered as to ownership on the
books of the corporation.
(g) "Transfer" means a change on the books of a corporation in the
registered ownership of a security.
(Source: Laws 1957, p. 247.)
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(760 ILCS 70/2) (from Ch. 32, par. 439.51)
Sec. 2.
Assignment
to a fiduciary.
A corporation making a transfer of a security upon assignment by the
registered owner to a person described as a fiduciary in the assignment or
known by the corporation to be a fiduciary is not bound to inquire into the
existence, extent, or correct description of the fiduciary relationship,
and thereafter, until the corporation receives written notice to the
contrary, it may assume without inquiry that the registered owner continues
to be the fiduciary.
(Source: Laws 1957, p. 247.)
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(760 ILCS 70/3) (from Ch. 32, par. 439.52)
Sec. 3.
Assignment
by a fiduciary.
A corporation making a transfer of a security upon assignment by a
fiduciary:
(a) may assume without inquiry that the assignment, even though to the
fiduciary himself or to his nominee, is within his authority and capacity
and is not in breach of his fiduciary duties,
(b) may assume without inquiry that the fiduciary has complied with the
laws of the state having jurisdiction of the fiduciary relationship,
including any laws requiring the fiduciary to obtain court approval of the
transfer, and
(c) is not charged with notice of and is not bound to obtain or examine
any court record or any recorded or unrecorded document relating to the
fiduciary relationship or the assignment, even though the record or
document is in its possession, except that, if the security is not
registered in the name of the fiduciary, the corporation shall obtain a
copy of a document showing his appointment and, if court appointed,
certified by the clerk of the appointing court within sixty days before the
date of transfer, but the corporation is charged with notice of only that
part of the document which provides for the appointment.
(Source: Laws 1957, p. 247.)
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(760 ILCS 70/4) (from Ch. 32, par. 439.53)
Sec. 4.
Adverse
claims.
If a person having or asserting a claim of beneficial interest adverse
to the transfer of a security from a fiduciary delivers written notice of
the claim to the corporation before the transfer, the corporation shall
promptly notify the claimant by registered mail of the presentation of the
security for transfer. The corporation shall withhold the transfer for 30
days after sending the notice and shall then make the transfer unless it is
restrained by a court order.
(Source: Laws 1961, p. 2433.)
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(760 ILCS 70/5) (from Ch. 32, par. 439.54)
Sec. 5.
Non-liability of corporation.
A corporation making a transfer of a security under this Act incurs no
liability to any person.
(Source: Laws 1957, p. 247.)
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(760 ILCS 70/5a) (from Ch. 32, par. 439.54a)
Sec. 5a.
Non-liability of third persons.
No person who participates in the acquisition, disposition, assignment
or transfer of a security by or to a fiduciary including a person who
guarantees the signature of the fiduciary is liable for participation in
any breach of fiduciary duty by reason of failure to inquire whether the
transaction involves such a breach unless it is shown that he acted with
actual knowledge that the proceeds of the transaction were being or were to
be used wrongfully for the individual benefit of the fiduciary or that the
transaction was otherwise in breach of duty.
If a corporation makes a transfer pursuant to an assignment by a
fiduciary, a person who guaranteed the signature of the fiduciary is not
liable on the guarantee to any person to whom the corporation by reason of
this Act incurs no liability.
This section does not impose any liability upon the corporation.
(Source: Laws 1961, p. 2433.)
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(760 ILCS 70/6) (from Ch. 32, par. 439.55)
Sec. 6.
Application.
The rights and duties of a corporation in registering
a security in the
name of a fiduciary or in making a transfer of a security pursuant to an
assignment by a fiduciary are governed by the law of the jurisdiction under
whose laws the corporation is organized.
This Act applies to the rights and duties of a person other than the
corporation with regard to acts and omissions in this State in connection
with the acquisition, disposition, assignment or transfer of a security by
or to a fiduciary and of a person who guarantees in this State the
signature of a fiduciary in connection with such a transaction.
(Source: Laws 1961, p. 2433.)
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(760 ILCS 70/7) (from Ch. 32, par. 439.56)
Sec. 7.
Tax
obligations.
This Act shall not be construed to affect any obligation of a
corporation with respect to estate, inheritance, succession or other taxes
imposed by the laws of this State.
(Source: Laws 1957, p. 247.)
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(760 ILCS 70/9) (from Ch. 32, par. 439.57)
Sec. 9.
Effective date.
This Act shall take effect on September 1, 1957.
(Source: Laws 1957, p. 247.)
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