8-505 - Duty of Securities Intermediary with respect to Payments and Distributions.

Section 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.