47-8504

47-8504. Duty of securities intermediary to
maintain financial asset

A. A securities intermediary shall promptly obtain and thereafter maintain a
financial asset in a quantity corresponding to the aggregate of all security entitlements
it has established in favor of its entitlement holders with respect to that financial
asset. The securities intermediary may maintain those financial assets directly or
through one or more other securities intermediaries.

B. Except to the extent otherwise agreed by its entitlement holder, a securities
intermediary may not grant any security interests in a financial asset it is obligated to
maintain pursuant to subsection A.

C. A securities intermediary satisfies the duty in subsection A 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 obtain and maintain the financial
asset.

D. This section does not apply to a clearing corporation that is itself the obligor
of an option or similar obligation to which its entitlement holders have security
entitlements.