§490:8-505 - Duty of securities intermediary with respect to payments and distributions.
§490:8-505 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. [L 1997, c 33, pt of §2]