Michigan Compiled Laws
174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511)
Section 440.8506 - Duty of Securities Intermediary to Exercise Rights With Respect to Financial Asset; Conditions.

Sec. 8506.
A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. The duty is satisfied if the securities intermediary does either of the following:
(a) Acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(b) In the absence of agreement, 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: Add. 1998, Act 278, Imd. Eff. July 27, 1998

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Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 440 - Uniform Commercial Code

Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)

Article 8 - Investment Securities (440.8101...440.8601)

174-1962-8-5 - Part 5 Security Entitlements (440.8501...440.8511)

Section 440.8501 - “Securities Account” Defined; Acquisition of Security Entitlement; Conditions; Directly Held Financial Asset; Issuance Not as Security Entitlement.

Section 440.8502 - Action Based on Adverse Claim.

Section 440.8503 - Entitlement Holder Property Interest.

Section 440.8504 - Maintenance of Financial Asset by Securities Intermediary; Quantity; Manner; Limitation; Duties; Applicability to Clearing Corporation.