(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.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 8 - Investment Securities
Part 5 - Security Entitlements
§ 4-8-501. Securities account — Acquisition of security entitlement from securities intermediary
§ 4-8-502. Assertion of adverse claim against entitlement holder
§ 4-8-504. Duty of securities intermediary to maintain financial asset
§ 4-8-505. Duty of securities intermediary with respect to payments and distributions
§ 4-8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder
§ 4-8-507. Duty of securities intermediary to comply with entitlement order
§ 4-8-510. Rights of purchaser of security entitlement from entitlement holder
§ 4-8-511. Priority among security interests and entitlement holders