400.8-505. Duty of securities intermediary with respect to payments and distributions.
Duty of securities intermediary with respect to payments anddistributions.
400.8-505. (a) A securities intermediary shall take action toobtain 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 asagreed upon by the entitlement holder and the securities intermediary; or
(2) In the absence of agreement, the securities intermediaryexercises due care in accordance with reasonable commercial standards toattempt to obtain the payment or distribution.
(b) A securities intermediary is obligated to its entitlement holderfor a payment or distribution made by the issuer of a financial asset ifthe payment or distribution is received by the securities intermediary.
(L. 1997 S.B. 6)