Section 8--109. Warranties in Indirect Holding.

(a) A person who originates an entitlement order to a securities
intermediary warrants to the securities intermediary that:

(1) the entitlement order is made by an appropriate person, or if

the entitlement order is by an agent, the agent has actual

authority to act on behalf of the appropriate person; and

(2) there is no adverse claim to the security entitlement.

(b) A person who delivers a security certificate to a securities
intermediary for credit to a securities account or originates an
instruction with respect to an uncertificated security directing that
the uncertificated security be credited to a securities account makes to
the securities intermediary the warranties specified in Section 8-108(a)
or (b).

(c) If a securities intermediary delivers a security certificate to
its entitlement holder or causes its entitlement holder to be registered
as the owner of an uncertificated security, the securities intermediary
makes to the entitlement holder the warranties specified in Section
8--108(a) or (b).