New York Uniform Commercial Code Law Section 8-505 - Duty of Securities Intermediary with respect to Payments and Distributions.

Section 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.

Last modified: February 3, 2019