Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 8-505 — Duty of Securities Intermediary with respect to Payments and Distributions

N.Y. U.C.C. Law § 8-505

Type: Statute
Source: New York Uniform Commercial Code
Jurisdiction: New York
Current through: Nov 5, 2026 (NY Senate Open Legislation)

Section 8--505. Duty of Securities Intermediary with respect to Payments

Citator

N.Y. U.C.C. Law § 8-505 — Duty of Securities Intermediary with respect to Payments and Distributions is in force in the current edition of the Code, and nothing recorded condemns it.

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.