Okla. Stat. tit. 12A § 8-508

Current through Laws 2024, c. 453.

Section 8-508 - Duty of Securities Intermediary to Change Entitlement Holder's Position to Other Forms 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.

Okla. Stat. tit. 12A, § 8-508

Added by Laws 1995, SB 522, c. 242, § 48, eff. 2/1/1996.

Oklahoma Code Comment

Another duty of the securities intermediary is to change an entitlement holder's position into any other form of holding for which the holder is eligible or to transfer the position to an account with another intermediary. Thus, for example, the holder may wish to change from indirect to direct ownership; that is, from holding a certificated or uncertificated security in street name to holding directly in the holder's name. As with other intermediary duties in Sections 8-504 through 8-508, the intermediary may discharge its duty in accordance with an agreement with the holder or by exercising due care. Compliance with applicable other law constitutes compliance with Section 8-508 . See UCC § 8-509(a).

Prior Statutory Provisions:

None.