30-8-407. Exchangeability of securities. (1) No issuer is subject to the requirements of this section unless it regularly maintains a system for issuing the class of securities involved under which both certificated and uncertificated securities are regularly issued to the category of owners, which includes the person in whose name the new security is to be registered.
     (2) Upon surrender of a certificated security with all necessary endorsements and presentation of a written request by the person surrendering the security, the issuer, if he has no duty as to adverse claims or has discharged the duty (30-8-403), shall issue to the person or a person designated by him an equivalent uncertificated security subject to all liens, restrictions, and claims that were noted on the certificated security.
     (3) Upon receipt of a transfer instruction originated by an appropriate person who so requests, the issuer of an uncertificated security shall cancel the uncertificated security and issue an equivalent certificated security on which must be noted conspicuously any liens and restrictions of the issuer and any adverse claims (as to which the issuer has a duty under 30-8-403(4)) to which the uncertificated security was subject. The certificated security shall be registered in the name of and delivered to:
     (a) the registered owner, if the uncertificated security was not subject to a registered pledge; or
     (b) the registered pledgee, if the uncertificated security was subject to a registered pledge.

     History: En. Sec. 52, Ch. 402, L. 1983.