§490:8-504  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. [L 1997, c 33, pt of
§2]