47-8506. 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.
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