Uniform Securities Ownership by Minors Act Law and Legal Definition

The Uniform Securities Ownership by Minors Act was drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 1960. This act facilitates business transactions. It exempts banks, brokers and transfer agents who handle securities of a minor, but do not deal with a minor directly from liability upon disaffirmance unless they had received notice of or had actual knowledge of the minority of the holder of the security.

The act has been adopted by states like Alabama, Arkansas and North Dakota.