70A-8-505 - Duty of securities intermediary with respect to payments and distributions.
70A-8-505. Duty of securities intermediary with respect to payments anddistributions.
(1) A securities intermediary shall take action to obtain a payment or distribution made bythe issuer of a financial asset. A securities intermediary satisfies the duty if:
(a) the securities intermediary acts with respect to the duty as agreed upon by theentitlement holder and the securities intermediary; or
(b) in the absence of agreement, the securities intermediary exercises due care inaccordance with reasonable commercial standards to attempt to obtain the payment ordistribution.
(2) A securities intermediary is obligated to its entitlement holder for a payment ordistribution made by the issuer of a financial asset if the payment or distribution is received by thesecurities intermediary.
Enacted by Chapter 204, 1996 General Session