California Commercial Code Section 8506
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California Laws > Commercial Code > California Commercial Code Section 8506
8506. A securities intermediary shall exercise rights with respect
to a financial asset if directed to do so by an entitlement holder. A
securities intermediary satisfies the duty if it does either of the
following:
(1) The securities intermediary acts with respect to the duty as
agreed upon by the entitlement holder and the securities
intermediary.
(2) In the absence of agreement, the securities intermediary
either places the entitlement holder in a position to exercise the
rights directly or exercises due care in accordance with reasonable
commercial standards to follow the direction of the entitlement
holder.
Section: 8506
Last modified: February 22, 2013
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