84-8-506. 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:
(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 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: L. 1996, ch. 202, ยง 73; July 1.
Structure Kansas Statutes
Chapter 84 - Uniform Commercial Code
Article 8 - Investment Securities
84-8-104 Acquisition of security or financial asset or interest therein.
84-8-105 Notice of adverse claim.
84-8-107 Whether indorsement, instruction or entitlement order is effective.
84-8-108 Warranties in direct holding.
84-8-109 Warranties in indirect holding.
84-8-110 Applicability; choice of law.
84-8-111 Clearing corporation rules.
84-8-112 Creditor's legal process.
84-8-113 Statute of frauds inapplicable.
84-8-114 Evidentiary rules concerning certificated securities.
84-8-115 Securities intermediary and others not liable to adverse claimant.
84-8-116 Securities intermediary as purchaser for value.
84-8-202 Issuer's responsibility and defenses; notice of defect or defense.
84-8-203 Staleness as notice of defect or defense.
84-8-204 Effect of issuer's restriction on transfer.
84-8-205 Effect of unauthorized signature on security certificate.
84-8-206 Completion or alteration of security certificate.
84-8-207 Rights and duties of issuer with respect to registered owners.
84-8-208 Effect of signature of authenticating trustee, registrar or transfer agent.
84-8-306 Effect of guaranteeing signature, indorsement or instruction.
84-8-307 Purchaser's right to requisites for registration of transfer.
84-8-401 Duty of issuer to register transfer.
84-8-402 Assurance that indorsement or instruction is effective.
84-8-403 Demand that issuer not register transfer.
84-8-404 Wrongful registration.
84-8-405 Replacement of lost, destroyed or wrongfully taken security certificate.
84-8-406 Obligation to notify issuer of lost, destroyed or wrongfully taken security certificate.
84-8-407 Authenticating trustee, transfer agent and registrar.
84-8-501 Securities account; acquisition of security entitlement from securities intermediary.
84-8-502 Assertion of adverse claim against entitlement holder.
84-8-503 Property interest of entitlement holder in financial asset held by securities intermediary.
84-8-504 Duty of securities intermediary to maintain financial asset.
84-8-505 Duty of securities intermediary with respect to payments and distributions.
84-8-506 Duty of securities intermediary to exercise rights as directed by entitlement holder.
84-8-507 Duty of securities intermediary to comply with entitlement order.
84-8-510 Rights of purchaser of security entitlement from entitlement holder.
84-8-511 Priority among security interests and entitlement holders.