Introduced By: Senator Irons
Date Introduced : May 4, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Chapter 6A-8 of the General Laws entitled "Investment Securities" is hereby amended by adding thereto the following section:
{ADD 6A-8-322. Statute of frauds inapplicable. -- ADD} {ADD A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing signed or record authenticated by a party against whom enforcement is sought, even if the contract or modification is not capable of performance within one (1) year of its making. ADD}
SECTION 2. Section 6A-8-319 of the General Laws in Chapter 6A-8 entitled "Investment Securities" is hereby repealed in its entirety.
{DEL 6A-8-319. Statute of frauds. -- A contract
for the sale of securities is not enforceable by way of action
or defense unless: DEL}
{DEL (a) There is some writing signed by the party against
whom enforcement is sought or by his or her authorized agent or
broker sufficient to indicate that a contract has been made for
sale of a stated quantity of described securities at a defined
or stated price; or DEL}
{DEL (b) Delivery of a certificated security or transfer instruction
has been accepted, or transfer of an uncertificated security has
been registered and the transferee has failed to send written
objection to the issuer within ten (10) days after receipt of
the initial transaction statement confirming the registration,
or payment has been made, but the contract is enforceable under
this provision only to the extent of the delivery, registration,
or payment; DEL}
{DEL (c) Within a reasonable time a writing in confirmation
of the sale or purchase and sufficient against the sender under
subdivision (a) has been received by the party against whom enforcement
is sought and he or she has failed to send written objection to
its contents within ten (10) days after its receipt; or DEL}
{DEL (d) The party against whom enforcement is sought admits
in his or her pleading, testimony, or otherwise in court that
a contract was made for the sale of a stated quantity of described
securities at a defined or stated price. DEL}
SECTION 3. Section 6A-1-206 of the General Laws in Chapter 6A-1 entitled "General Provisions" is hereby amended to read as follows:
6A-1-206. Statute of frauds for kinds of personal property not otherwise covered. -- (1) Except in the cases described in subsection (2) of this section, a contract for the sale of personal property is not enforceable by way of action or defense beyond five thousand dollars ($5,000) in amount or value of remedy unless there is some writing which indicates that a contract for sale has been made between the parties at a defined or stated price, reasonably identifies the subject matter, and is signed by the party against whom enforcement is sought or by his or her authorized agent.
(2) Subsection (1) of this section does not apply to contract
for the sale of goods (section 6A-2-201) nor of securities (section
6A-8- {DEL 319 DEL} {ADD 322 ADD}) nor to security agreements
(section 6A-9-203).
SECTION 4. This act shall take effect upon passage.
