§ 8.8A-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.
(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