§8-1508. Duty of securities intermediary to change entitlement holder's position to other form of security holding
125 words·~1 min read·
/me/title-11-uniform-commercial-code/8-1508A 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: [PL 1997, c. 429, Pt. B, §2 (NEW).]
(1). The securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or
[PL 1997, c. 429, Pt. B, §2 (NEW).]
(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.
[PL 1997, c. 429, Pt. B, §2 (NEW).]