28-8-505. DUTY OF SECURITIES INTERMEDIARY WITH RESPECT TO PAYMENTS AND DISTRIBUTIONS. (1) 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:
(a) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
(b) 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.
(2) 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.
History:
[28-8-505, added 1995, ch. 272, sec. 2, p. 897.]
Structure Idaho Code
Title 28 - COMMERCIAL TRANSACTIONS
Chapter 8 - INVESTMENT SECURITIES
Part 5 - SECURITY ENTITLEMENTS
Section 28-8-502 - ASSERTION OF ADVERSE CLAIM AGAINST ENTITLEMENT HOLDER.
Section 28-8-504 - DUTY OF SECURITIES INTERMEDIARY TO MAINTAIN FINANCIAL ASSET.
Section 28-8-505 - DUTY OF SECURITIES INTERMEDIARY WITH RESPECT TO PAYMENTS AND DISTRIBUTIONS.
Section 28-8-507 - DUTY OF SECURITIES INTERMEDIARY TO COMPLY WITH ENTITLEMENT ORDER.
Section 28-8-510 - RIGHTS OF PURCHASER OF SECURITY ENTITLEMENT FROM ENTITLEMENT HOLDER.
Section 28-8-511 - PRIORITY AMONG SECURITY INTERESTS AND ENTITLEMENT HOLDERS.