§490:8-505 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. [L 1997, c 33, pt of §2]
Section: Previous 490-8-405 490-8-406 490-8-407 490-8-501 490-8-502 490-8-503 490-8-504 490-8-505 490-8-506 490-8-507 490-8-508 490-8-509 490-8-510 490-8-511 490-9-101-to-490-9-507 NextLast modified: October 27, 2016