30-8-505. 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: En. Sec. 65, Ch. 536, L. 1997.
Structure Montana Code Annotated
Chapter 8. Uniform Commercial Code Investment Securities
30-8-501. Securities account -- acquisition of security entitlement from securities intermediary
30-8-502. Assertion of adverse claim against entitlement holder
30-8-503. Property interest of entitlement holder in financial asset held by securities intermediary
30-8-504. Duty of securities intermediary to maintain financial asset
30-8-505. Duty of securities intermediary with respect to payments and distributions
30-8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder
30-8-507. Duty of securities intermediary to comply with entitlement order
30-8-510. Rights of purchaser of security entitlement from entitlement holder
30-8-511. Priority among security interests and entitlement holders