47-8509

47-8509. Specification of duties of securities
intermediary by other statute or regulation; manner of performance
of duties of securities intermediary and exercise of rights of
entitlement holder

A. If the substance of a duty imposed upon a securities intermediary by sections
47-8504 through 47-8508 is the subject of other statute, regulation or rule, compliance
with that statute, regulation or rule satisfies the duty.

B. To the extent that specific standards for the performance of the duties of a
securities intermediary or the exercise of the rights of an entitlement holder are not
specified by other statute, regulation or rule or by agreement between the securities
intermediary and entitlement holder, the securities intermediary shall perform its duties
and the entitlement holder shall exercise its rights in a commercially reasonable manner.

C. The obligation of a securities intermediary to perform the duties imposed by
sections 47-8504 through 47-8508 is subject to:

1. Rights of the securities intermediary arising out of a security interest under a
security agreement with the entitlement holder or otherwise; and

2. Rights of the securities intermediary under other law, regulation, rule or
agreement to withhold performance of its duties as a result of unfulfilled obligations of
the entitlement holder to the securities intermediary.

D. Sections 47-8504 through 47-8508 do not require a securities intermediary to
take any action that is prohibited by other statute, regulation or rule.