Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 8-508 — Duty of Securities Intermediary to change Entitlement Holder's Position to Other Form of Security Holding

N.Y. U.C.C. Law § 8-508

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

Section 8--508. Duty of Securities Intermediary to change Entitlement

Citator

N.Y. U.C.C. Law § 8-508 — Duty of Securities Intermediary to change Entitlement Holder's Position to Other Form of Security Holding is in force in the current edition of the Code, and nothing recorded condemns it.

Section 8--508. Duty of Securities Intermediary to change Entitlement

Holder's Position to Other Form 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.