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  • SECTION 8-507
    Duty of Securities Intermediary to comply with Entitlement Order
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  • SECTION 8-509
    Specification of Duties of Securities Intermediary by Other Statute or Regulation; Manner of Performance of Duties of Securities Intermed...
    • This entry was published on 2014-09-22
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    SECTION 8-508

    Duty of Securities Intermediary to change Entitlement Holder's Position to Other Form of Security Holding

    Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 8, PART 5

    Section 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.