Code of Alabama - Title 7: Commercial Code - Section 7-8-505 - Duty of securities intermediary with respect to payments and distributions
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Section 7-8-505 - Duty of securities intermediary with respect to payments and distributions.
(a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:
(1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(2) in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution.
(b) A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.
(Acts 1996, No. 96-742, p. 1241, §1.)
Sections: 7-8-405 7-8-406 7-8-407 7-8-501 7-8-502 7-8-503 7-8-504 7-8-505 7-8-506 7-8-507 7-8-508 7-8-509 7-8-510 7-8-511 7-8-601
Last modified: February 19, 2012
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