47-8505

47-8505. 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.