(a) If the substance of a duty imposed upon a securities intermediary by Sections 7-8-504 through 7-8-508 is the subject of other statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty.
(b) To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.
(c) The obligation of a securities intermediary to perform the duties imposed by Sections 7-8-504 through 7-8-508 is subject to:
(1) rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and
(2) rights of the securities intermediary under other law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.
(d) Sections 7-8-504 through 7-8-508 do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.
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.