70A-8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holder.
70A-8-506. Duty of securities intermediary to exercise rights as directed byentitlement holder.
A securities intermediary shall exercise rights with respect to a financial asset if directedto 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 theentitlement holder and the securities intermediary; or
(2) in the absence of agreement, the securities intermediary either places the entitlementholder in a position to exercise the rights directly or exercises due care in accordance withreasonable commercial standards to follow the direction of the entitlement holder.
Enacted by Chapter 204, 1996 General Session