Okla. Stat. tit. 12A § 8-505

Current through Laws 2024, c. 453.

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.

Okla. Stat. tit. 12A, § 8-505

Added by Laws 1995, SB 522, c. 242, § 45, eff. 2/1/1996.

Oklahoma Code Comment

One of the main reasons investors make use of securities intermediaries is to obtain the services of a professional in performing the record-keeping and other functions necessary to enable the receipt of payments and other distributions made by the issuer. It is the intermediary's duty to take appropriate action to obtain a payment or distribution. Under this Section, as is generally true in Sections 8-504 through 8-508, the intermediary may satisfy its duty by acting as agreed upon with the entitlement holder or, in the absence of agreement, by acting in accordance with reasonable commercial standards, including applicable other law. See UCC § 8-509(a). The duties of the securities intermediary are subject to its own rights by way of set-off, counterclaim or otherwise. See UCC § 8-509(c). With respect to distributions actually received, however, the intermediary is obligated to the entitlement holder for such distributions.

Prior Statutory Provisions:

None.