Statute · New York Uniform Commercial Code
N.Y. U.C.C. Law § 8-506 — Duty of Securities Intermediary to Exercise Rights as directed by Entitlement Holder
N.Y. U.C.C. Law § 8-506
- Type
- Statute
- Source
- New York Uniform Commercial Code
- Jurisdiction
- New York
- Current through
- Nov 5, 2026 (NY Senate Open Legislation)
Section 8--506. Duty of Securities Intermediary to Exercise Rights as
Citator
N.Y. U.C.C. Law § 8-506 — Duty of Securities Intermediary to Exercise Rights as directed by Entitlement Holder is in force in the current edition of the Code, and nothing recorded condemns it.
Section 8--506. Duty of Securities Intermediary to Exercise Rights as
directed by Entitlement Holder.
A 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.