Duty of securities intermediary to change entitlement holder's position to other form of security holding

  1. Law
  2. Maine Revised Statutes
  3. UNIFORM COMMERCIAL CODE
  4. INVESTMENT SECURITIES
  5. SECURITY ENTITLEMENTS
  6. Duty of securities intermediary to change entitlement holder's position to other form of security holding

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§8-1508. 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:   [PL 1997, c. 429, Pt. B, §2 (NEW).]

(1).  The securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or  

[PL 1997, c. 429, Pt. B, §2 (NEW).]

(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.  

[PL 1997, c. 429, Pt. B, §2 (NEW).]

SECTION HISTORY

PL 1997, c. 429, §B2 (NEW).


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