T-11.002 - Act respecting the transfer of securities and the establishment of security entitlements

Section 35 Disposition versions

2009-01-01

35. After an act or event that creates a right to immediate performance of the principal obligation represented by a certificated security or that sets a date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is deemed to have notice of a defect in the security’s issue or of any other defect that may be raised by the issuer if

(1)  the act or event requires that, on presentation or surrender of the security certificate, money be paid, a certificated security be delivered or a transfer of an uncertificated security be registered, the money or security is available on the date set for redemption or exchange, and the purchaser takes delivery of the security more than one year after that date; or

(2)  the act or event is not one to which paragraph 1 applies and the purchaser takes delivery of the security more than two years after the date on which performance of the principal obligation became due or the date set for presentation or surrender.

This section does not apply to a call that has been revoked.

2008, c. 20, s. 35.