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This entry was published on 2014-09-22
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Staleness as Notice of Defect or Defense
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 8, PART 2
Section 8--203. Staleness as Notice of Defect or Defense.

After an act or event, other than a call that has been revoked,
creating a right to immediate performance of the principal obligation
represented by a certificated security or setting a date on or after
which the security is to be presented or surrendered for redemption or
exchange, a purchaser is charged with notice of any defect in its issue
or defense of the issuer, if the act or event:

(1) requires the payment of money, the delivery of a certificated
security, the registration of transfer of an uncertificated security, or
any of them on presentation or surrender of the security certificate,
the money or security is available on the date set for payment or
exchange, and the purchaser takes the security more than one year after
that date; or

(2) is not covered by subsection (1) and the purchaser takes the
security more than two years after the date set for surrender or
presentation or the date on which performance became due.