Section 8--402. Assurance that Indorsement or Instruction is Effective.

(a) An issuer may require the following assurance that each necessary
indorsement or each instruction is genuine and authorized:

(1) in all cases, a guaranty of the signature of the person

making an indorsement or originating an instruction

including, in the case of an instruction, reasonable

assurance of identity;

(2) if the indorsement is made or the instruction is originated

by an agent, appropriate assurance of actual authority to

sign;

(3) if the indorsement is made or the instruction is originated

by a fiduciary pursuant to Section 8--107(a)(4) or (a)(5),

appropriate evidence of appointment or incumbency;

(4) if there is more than one fiduciary, reasonable assurance

that all who are required to sign have done so; and

(5) if the indorsement is made or the instruction is originated

by a person not covered by another provision of this

subsection, assurance appropriate to the case corresponding

as nearly as may be to the provisions of this subsection.

(b) An issuer may elect to require reasonable assurance beyond that
specified in this section.

(c) In this section:

(1) "Guaranty of the signature" means a guaranty signed by or on

behalf of a person reasonably believed by the issuer to be

responsible. An issuer may adopt standards with respect to

responsibility if they are not manifestly unreasonable.

(2) "Appropriate evidence of appointment or incumbency" means:

(i) in the case of a fiduciary appointed or qualified by a

court, a certificate issued by or under the direction or

supervision of the court or an officer thereof and dated

within 6 months before the date of presentation for

transfer; or

(ii) in any other case, a copy of a document showing the

appointment or a certificate issued by or on behalf of a

person reasonably believed by an issuer to be responsible

or, in the absence of that document or certificate, other

evidence the issuer reasonably considers appropriate.