§ 8.8A-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.
(1996, c. 216.)
Sections: Previous 8.8A-501 8.8A-502 8.8A-503 8.8A-504 8.8A-505 8.8A-506 8.8A-507 8.8A-508 8.8A-509 8.8A-510 8.8A-511 NextLast modified: April 3, 2009