North Carolina General Statutes § 25-8-506 Duty of securities intermediary to exercise rights as directed by entitlement holder

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:

(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 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. (1997-181, s. 1.)

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Last modified: March 23, 2014