New York Uniform Commercial Code Law Section 8-507 - Duties of Securities Intermediary to comply with Entitlement Order.

Section 8--507. Duty   of   Securities   Intermediary   to  comply  with
                Entitlement Order.
(a) A securities intermediary shall comply with an  entitlement  order
  if  the  entitlement  order is originated by the appropriate person, the
  securities intermediary has had reasonable opportunity to assure  itself
  that the entitlement order is genuine and authorized, and the securities
  intermediary   has   had  reasonable  opportunity  to  comply  with  the
  entitlement order. 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 comply with the entitlement order.
(b) If a securities intermediary transfers a financial asset  pursuant
  to  an  ineffective entitlement order, the securities intermediary shall
  reestablish a security entitlement in favor of the  person  entitled  to
  it,  and pay or credit any payments or distributions that the person did
  not receive as a result of the  wrongful  transfer.  If  the  securities
  intermediary does not reestablish a security entitlement, the securities
  intermediary is liable to the entitlement holder for damages.

Last modified: February 3, 2019