Section 7-8-508 Duty of Securities Intermediary to Change Entitlement Holder’s Position to Other Form of Security Holding.
101 words·~1 min read·
/al/title-7-commercial-code/part-5-security-entitlements/7-8-508·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:
(1)the securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or
(2)in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.