                                 CODE OF VIRGINIA

EVIDENTIARY RULES CONCERNING CERTIFICATED SECURITIES (§ 8.8A-114)

The following rules apply in an action on a certificated security against the
issuer:

1. Unless specifically denied in the pleadings, each signature on a security
certificate or in a necessary endorsement is admitted.

2. If the effectiveness of a signature is put in issue, the burden of
establishing effectiveness is on the party claiming under the signature, but the
signature is presumed to be genuine or authorized.

3. If signatures on a security certificate are admitted or established,
production of the certificate 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 it is shown that a defense or defect exists, the plaintiff has the burden
of establishing that the plaintiff or some person under whom the plaintiff
claims is a person against whom the defense or defect cannot be asserted.

HISTORY: 1996, c. 216.