28-8-506. DUTY OF SECURITIES INTERMEDIARY TO EXERCISE RIGHTS AS DIRECTED BY ENTITLEMENT HOLDER. 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.
History:
[28-8-506, 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.