A securities intermediary shall exercise rights with respect to a financial asset if directed by an entitlement holder to exercise the rights. 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.
Structure Alaska Statutes
Chapter 08. Investment Securities
Article 5. Security Entitlements.
Sec. 45.08.502. Assertion of adverse claim against entitlement holder.
Sec. 45.08.504. Duty of securities intermediary to maintain financial asset.
Sec. 45.08.505. Duty of securities intermediary with respect to payments and distributions.
Sec. 45.08.507. Duty of securities intermediary to comply with entitlement order.
Sec. 45.08.510. Rights of purchaser of security entitlement from entitlement holder.
Sec. 45.08.511. Priority among security interests and entitlement holders.