§12A-8-505. Duty of Securities Intermediary with Respect to
135 words·~1 min read·
/ok/title-12a-uniform-commercial-code/12a-8-505·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Payments and Distributions.
Duty of Securities Intermediary with Respect to Payments and Distributions.
(a)A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:
(1)the securities intermediary acts with respect to the
duty 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 attempt to obtain
the payment or distribution.
(b)A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary. Added by Laws 1995, c. 242, § 45, eff. Feb. 1, 1996.