Section 355.8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holderA 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.Effective:1/1/1997
Created 1996, Ky. Acts ch. 130, sec. 159, effective1/1/1997.