§ 25-8-505. Duty of securities intermediary with respect to payments and distributions.
§25‑8‑505. Duty of securities intermediary with respect to paymentsand distributions.
(a) A securitiesintermediary shall take action to obtain a payment or distribution made by theissuer of a financial asset. A securities intermediary satisfies the duty if:
(1) The securitiesintermediary acts with respect to the duty as agreed upon by the entitlementholder and the securities intermediary; or
(2) In the absence ofagreement, the securities intermediary exercises due care in accordance withreasonable commercial standards to attempt to obtain the payment ordistribution.
(b) A securitiesintermediary is obligated to its entitlement holder for a payment ordistribution made by the issuer of a financial asset if the payment ordistribution is received by the securities intermediary. (1997‑181,s. 1.)