70A-8-505. Duty of securities intermediary with respect to payments and
distributions.
(1) 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:
(a) the securities intermediary acts with respect to the duty as agreed upon by the
entitlement holder and the securities intermediary; or
(b) 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.
(2) 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.
Enacted by Chapter 204, 1996 General Session
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Last revised: Friday, December 12, 2008