Adverse Claim on Security Law and Legal Definition
According to 31 CFR 354.1 [Title 31 -- Money and Finance: Treasury; Subtitle B -- Regulations Relating to Money and Finance; Chapter II -- Fiscal Service, Department of the Treasury; Subchapter B -- Bureau of the Public Debt; Part 354 -- Regulations Governing Book-Entry Securities of the Student Loan Marketing Association (Sallie Mae)], adverse claim on security means “a claim that a claimant has a property interest in a Security and that it is a violation of the rights of the claimant for another Person to hold, transfer, or deal with the Security.”
