8.8A-506 - A-506. Duty of securities intermediary to exercise rights as directed by entitlement holder.
§ 8.8A-506. Duty of securities intermediary to exercise rights as directed byentitlement holder.
A securities intermediary shall exercise rights with respect to a financialasset if directed to do so by an entitlement holder. A securitiesintermediary satisfies the duty if:
(1) the securities intermediary acts with respect to the duty as agreed uponby the entitlement holder and the securities intermediary; or
(2) in the absence of agreement, the securities intermediary either placesthe entitlement holder in a position to exercise the rights directly orexercises due care in accordance with reasonable commercial standards tofollow the direction of the entitlement holder.
(1996, c. 216.)