§490:8-508 - Duty of securities intermediary to change entitlement holder's position to other form of security holding.
§490:8-508 Duty of securities intermediary
to change entitlement holder's position to other form of security holding.
A securities intermediary shall act at the direction of an entitlement holder
to change a security entitlement into another available form of holding for
which the entitlement holder is eligible, or to cause the financial asset to be
transferred to a securities account of the entitlement holder with another
securities intermediary. A securities intermediary satisfies the duty if:
(1) The securities intermediary acts 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 follow the direction of the entitlement holder. [L 1997, c 33, pt
of §2]