400.8-508. Duty of securities intermediary to change entitlement holder's position to other form of security holding.
Duty of securities intermediary to change entitlement holder'sposition to other form of security holding.
400.8-508. A securities intermediary shall act at the direction ofan entitlement holder to change a security entitlement into anotheravailable form of holding for which the entitlement holder is eligible, orto cause the financial asset to be transferred to a securities account ofthe entitlement holder with another securities intermediary. A securitiesintermediary satisfies the duty if:
(1) The securities intermediary acts as agreed upon by theentitlement holder and the securities intermediary; or
(2) In the absence of agreement, the securities intermediaryexercises due care in accordance with reasonable commercial standards tofollow the direction of the entitlement holder.
(L. 1997 S.B. 6)