Statute · New York Uniform Commercial Code
N.Y. U.C.C. Law § 8-504 — Duty of Securities Intermediary to Maintain Financial Asset
N.Y. U.C.C. Law § 8-504
- Type
- Statute
- Source
- New York Uniform Commercial Code
- Jurisdiction
- New York
- Current through
- Nov 5, 2026 (NY Senate Open Legislation)
Section 8--504. Duty of Securities Intermediary to Maintain Financial
Citator
N.Y. U.C.C. Law § 8-504 — Duty of Securities Intermediary to Maintain Financial Asset is in force in the current edition of the Code, and nothing recorded condemns it.
Section 8--504. Duty of Securities Intermediary to Maintain Financial
Asset.
(a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.
(b) Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (a).
(c) A securities intermediary satisfies the duty in subsection (a) 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 obtain and maintain the financial asset.
(d) This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.