# Ind. Code § 26-1-8.1-105: Notice of adverse claim > Indiana · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-105 ## Section - **Citation:** Ind. Code § 26-1-8.1-105 - **Heading:** Notice of adverse claim - **Jurisdiction:** Indiana - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-105 ## Text Sec. 105. (a) A person has notice of an adverse claim if: (1) the person knows of the adverse claim; (2) the person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim; or (3) the person has a duty, imposed by statute or regulation, to investigate whether an adverse claim exists, and the investigation so required would establish the existence of the adverse claim. (b) Having knowledge that a financial asset or interest therein is or has been transferred by a representative imposes no duty of inquiry into the rightfulness of a transaction and is not notice of an adverse claim. However, a person who knows that a representative has transferred a financial asset or interest therein in a transaction that is, or whose proceeds are being used, for the individual benefit of the representative or otherwise in breach of duty has notice of an adverse claim. (c) An act or event that creates a right to immediate performance of the principal obligation represented by a security certificate or sets a date on or after which the certificate is to be presented or surrendered for redemption or exchange does not itself constitute notice of an adverse claim except in the case of a transfer more than: (1) one (1) year after a date set for presentment or surrender for redemption or exchange; or (2) six (6) months after a date set for payment of money against presentation or surrender of the certificate, if money was available for payment on that date. (d) A purchaser of a certificated security has notice of an adverse claim if the security certificate: (1) whether in bearer or registered form, has been endorsed "for collection" or "for surrender" or for some other purpose not involving transfer; or (2) is in bearer form and has on it an unambiguous statement that it is the property of a person other than the transferor, but the mere writing of a name on the certificate is not such a statement. (e) Filing of a financing statement under IC 26-1-9.1 is not notice of an adverse claim to a financial asset. As added by P.L.247-1995, SEC.10. Amended by P.L.57-2000, SEC.39. ## Nearby sections - [Ind. Code § 26-1-8.1-0.1 Effect of enactment of chapter](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-0.1.md) - [Ind. Code § 26-1-8.1-0.3 Perfection of certain security interests; continuation of perfection](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-0.3.md) - [Ind. Code § 26-1-8.1-101 Short title](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-101.md) - [Ind. Code § 26-1-8.1-102 Definitions and index of definitions; principles of construction and interpretation; characterization of person, business, or transaction](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-102.md) - [Ind. Code § 26-1-8.1-103 Classification as security or financial asset](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-103.md) - [Ind. Code § 26-1-8.1-104 Acquisition of a security or financial asset](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-104.md) - [Ind. Code § 26-1-8.1-105 Notice of adverse claim](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-105.md) - [Ind. Code § 26-1-8.1-106 Control by purchaser; certificated security, uncertificated security, or security entitlement; agreement by issuer or securities intermediary to comply with purchaser's orders or instructions](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-106.md) - [Ind. Code § 26-1-8.1-107 Effectiveness of endorsement, instruction, or entitlement order](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-107.md) - [Ind. Code § 26-1-8.1-108 Warranties upon purchase or transfer of security](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-108.md) - [Ind. Code § 26-1-8.1-109 Warranties made by and to a securities intermediary](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-109.md) - [Ind. Code § 26-1-8.1-110 Governing local law; determination of jurisdiction of issuer or securities intermediary](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-110.md) - [Ind. Code § 26-1-8.1-111 Applicability of rules adopted by clearing corporations](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-111.md) - [Ind. Code § 26-1-8.1-112 Creditor access to debtor's interest in a security](https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-112.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IN_T26_A1_C8.1_S26-1-8.1-105. Check the current official text before relying on it. Not legal advice.