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 Maryland Statutes
Title 8 - Investment Securities
Subtitle 5 - Security Entitlements
Section 8-501 - Securities Account; Acquisition of Security Entitlement From Securities Intermediary
Section 8-502 - Assertion of Adverse Claim Against Entitlement Holder
Section 8-504 - Duty of Securities Intermediary to Maintain Financial Asset
Section 8-505 - Duty of Securities Intermediary With Respect to Payments and Distributions
Section 8-506 - Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder
Section 8-507 - Duties of Securities Intermediary to Comply With Entitlement Order
Section 8-510 - Rights of Purchaser of Security Entitlement From Entitlement Holder
Section 8-511 - Priority Among Security Interests and Entitlement Holders