(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.
1996, c. 216.
Structure Code of Virginia
Title 8.8A - Commercial Code - Investment Securities
§ 8.8A-501. Securities account; acquisition of security entitlement from securities intermediary
§ 8.8A-502. Assertion of adverse claim against entitlement holder
§ 8.8A-504. Duty of securities intermediary to maintain financial asset
§ 8.8A-505. Duty of securities intermediary with respect to payments and distributions
§ 8.8A-506. Duty of securities intermediary to exercise rights as directed by entitlement holder
§ 8.8A-507. Duty of securities intermediary to comply with entitlement order
§ 8.8A-510. Rights of purchaser of security entitlement from entitlement holder
§ 8.8A-511. Priority among security interests and entitlement holders