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This entry was published on 2014-09-22
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SECTION 8-506
Duty of Securities Intermediary to Exercise Rights as directed by Entitlement Holder
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 8, PART 5
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.