8-506 - Duty of Securities Intermediary to Exercise Rights as directed by Entitlement Holder.

Section 8--506. Duty  of  Securities  Intermediary to Exercise Rights as directed by Entitlement Holder. A securities intermediary shall exercise  rights  with  respect  to  a  financial  asset  if  directed  to  do  so  by  an entitlement holder. 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  either  places  the  entitlement  holder  in  a  position to exercise the rights  directly or exercises due care in accordance with reasonable  commercial  standards to follow the direction of the entitlement holder.