70A-8-508 - Duty of securities intermediary to change entitlement holder's position to other form of security holding.
70A-8-508. Duty of securities intermediary to change entitlement holder's positionto other form of security holding.
A securities intermediary shall act at the direction of an entitlement holder to change asecurity entitlement into another available form of holding for which the entitlement holder iseligible, or to cause the financial asset to be transferred to a securities account of the entitlementholder with another securities intermediary. A securities intermediary satisfies the duty if:
(1) the securities intermediary acts as agreed upon by the entitlement holder and thesecurities intermediary; or
(2) in the absence of agreement, the securities intermediary exercises due care inaccordance with reasonable commercial standards to follow the direction of the entitlementholder.
Enacted by Chapter 204, 1996 General Session