Also known as: nominated persons · nominee
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An individual on whose behalf shares are registered in the name of an intermediary or nominee. The individual may elect to be treated by the corporation as the record shareholder upon filing a beneficial ownership certificate under a board-established procedure.
An individual on whose behalf shares are registered in the name of an intermediary or nominee. The individual may elect to be treated by the corporation as the record shareholder upon filing a beneficial ownership certificate under a board-established procedure.
Select any source to read its text and confirm it supports the definition.
A bank authorized by the issuer of a letter of credit to accept documents and give value under the credit. The nominated person acquires a security interest in presented documents when value is given and holds priority in letter-of-credit rights when control is obtained.
Select any source to read its text and confirm it supports the definition.
A bank authorized by the issuer of a letter of credit to accept documents and give value under the credit. The nominated person acquires a security interest in presented documents when value is given and holds priority in letter-of-credit rights when control is obtained.
Each sense below has its own examples, sources, and questions.
Nicole Navarro holds shares through a brokerage intermediary. The corporation's board has adopted a procedure allowing beneficial owners to file a certificate electing record-shareholder treatment. Navarro files the certificate. She thereby gains the right to vote the shares directly and receive distributions, while the intermediary loses those rights for the covered shares.
The beneficial owner must file a beneficial ownership certificate with the corporation under the procedure established by the board. Once filed, the owner receives the rights and privileges of a record shareholder to the extent specified in the procedure, and the record shareholder loses those rights.
Supporting sources
Northern Manufacturing obtains a standby letter of credit from an issuing bank to secure a construction contract. The issuer nominates Northstar Logistics to accept conforming documents and advance value. When Northstar honors a presentation, it obtains a security interest in the documents and gains control over the letter-of-credit right, giving it priority over another secured party that perfected only by filing.
A secured party obtains control of a letter-of-credit right when the issuer or nominated person agrees to follow that party's instructions regarding draws or proceeds. Control confers priority over a conflicting security interest held by a party that lacks control, even if the noncontrolling party perfected earlier by filing.
Supporting sources
A nominated person who is not a confirmer has no obligation to honor or give value under the letter of credit unless it agrees to do so. If it does give value, it obtains a security interest in the documents presented.
No. Letter-of-credit rights are governed by a control-based priority rule. A party that perfects only by filing is subordinate to a party that obtains control through an agreement with the issuer or nominated person.
Supporting sources
…that Dr. Foakes undertakes by it no obligation whatever; he does not bind himself to pay any instalment to her or to her "nominee;" and it was not necessary that he should, for I can entertain no doubt that if what is called the "condition" for payment of the instalments had not been fulfilled then Mrs. Beer could…