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.
Structure Code of Alabama
Article 8 - Investment Securities.
Part 5 - Security Entitlements.
Section 7-8-502 - Assertion of Adverse Claim Against Entitlement Holder.
Section 7-8-504 - Duty of Securities Intermediary to Maintain Financial Asset.
Section 7-8-505 - Duty of Securities Intermediary With Respect to Payments and Distributions.
Section 7-8-507 - Duty of Securities Intermediary to Comply With Entitlement Order.
Section 7-8-510 - Rights of Purchaser of Security Entitlement From Entitlement Holder.
Section 7-8-511 - Priority Among Security Interests and Entitlement Holders.