Overissue Law and Legal Definition
Overissue means the issue of securities in a greater quantity than that is authorized by an issuer. A case of overissue will make the issuing party responsible for the cost of recovery of value for the issued party.
Following is an example of a federal statute defining overissue:
U.C.C. § 8-210 (a) In this section, "overissue" means the issue of securities in excess of the amount the issuer has corporate power to issue, but an overissue does not occur if appropriate action has cured the overissue.
