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 Delaware Code
Article 8. Investment Securities
§ 8-501. Securities account; acquisition of security entitlement from securities intermediary.
§ 8-502. Assertion of adverse claim against entitlement holder.
§ 8-503. Property interest of entitlement holder in financial asset held by securities intermediary.
§ 8-504. Duty of securities intermediary to maintain financial asset.
§ 8-505. Duty of securities intermediary with respect to payments and distributions.
§ 8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder.
§ 8-507. Duty of securities intermediary to comply with entitlement order.
§ 8-510. Rights of purchaser of security entitlement from entitlement holder.
§ 8-511. Priority among security interests and entitlement holders.