§12A-8-506. Duty of Securities Intermediary to Exercise Rights as
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Directed by Entitlement Holder.
Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder.
A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. 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 either places the entitlement holder in a
position to exercise the rights directly or exercises
due care in accordance with reasonable commercial
standards to follow the direction of the entitlement
holder. Added by Laws 1995, c. 242, § 46, eff. Feb. 1, 1996.