A fly-power assignment refers to a specific type of written assignment that allows for the transfer of stock ownership. This assignment is considered "blank" because it does not specify a particular recipient. Its value is realized only when it is attached to a stock certificate, making the stock transferable to the person who holds both the assignment and the certificate.
Fly-power assignments are primarily used in the context of securities law and corporate finance. They facilitate the transfer of ownership of stocks, which can be essential in transactions involving investments, mergers, or acquisitions. Users may handle these assignments themselves using legal templates provided by services like US Legal Forms, ensuring they meet the necessary legal requirements.
Here are a couple of examples of abatement:
For instance, if a shareholder wants to sell their stock but does not have a specific buyer in mind, they can complete a fly-power assignment. This allows them to transfer the stock to anyone who later presents the assignment along with the stock certificate.
(hypothetical example) A company is undergoing a merger. The current shareholders submit fly-power assignments to the acquiring company, allowing the new entity to take ownership of the stocks without needing to specify each new owner in advance.
Examples of state differences (not exhaustive):
| State | Key Differences |
|---|---|
| California | Requires additional documentation for corporate stocks. |
| New York | May have specific forms for fly-power assignments. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Stock Power | A document that transfers ownership of stock. | Typically names a specific assignee, unlike a fly-power assignment. |
| Endorsement | A signature on the back of a stock certificate. | Usually requires the signature of the current owner, while a fly-power assignment does not. |
If you need to use a fly-power assignment, ensure you have a valid stock certificate ready. You can utilize legal templates from US Legal Forms to create your assignment correctly. If your situation is complex, consider consulting a legal professional for personalized advice.
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A fly-power assignment is a blank written assignment that facilitates the transfer of stock ownership when attached to a stock certificate.