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This entry was published on 2014-09-22
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SECTION 8-505
Duty of Securities Intermediary with respect to Payments and Distributions
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 8, PART 5
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.