24.38.050 Certificated Securities Negotiable; Statements and Instructions Not Negotiable; Presumptions

(a) Certificated securities governed by this article are negotiable instruments.

(b) Statements (Section 24.41.080), notices, or the like, sent by the issuer of uncertificated securities and instruction (Section 24.40.080) are neither negotiable instruments nor certificated securities.

(c) In any action on a security:

(1) unless specifically denied in the pleadings, each signature on a certificated security, in a necessary endorsement, on an initial transaction statement, or on an instruction, is admitted;

(2) if the effectiveness of a signature is put in issue, the burden of establishing it is on the party claiming under the signature, but the signature is presumed to be genuine or authorized;

(3) if signatures on a certificated security are admitted or established, production of the security entitles a holder to recover on it unless the defendant establishes a defense or a defect going to the validity of the security;

(4) if signatures on an initial transaction statement are admitted or established, the facts stated in the statement are presumed to be true as of the time of its issuance; and

(5) after it is shown that a defense or defect exists, the plaintiff has the burden of establishing that he or she or some person under whom he or she claims is a person against whom the defense or defect is ineffective (Section 24.39.020).