New York Laws
Part 4 - Registration
8-504 - Duty of Securities Intermediary to Maintain Financial Asset.

(a) A securities intermediary shall promptly obtain and thereafter
maintain a financial asset in a quantity corresponding to the aggregate
of all security entitlements it has established in favor of its
entitlement holders with respect to that financial asset. The securities
intermediary may maintain those financial assets directly or through one
or more other securities intermediaries.
(b) Except to the extent otherwise agreed by its entitlement holder, a
securities intermediary may not grant any security interests in a
financial asset it is obligated to maintain pursuant to subsection (a).
(c) A securities intermediary satisfies the duty in subsection (a) 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
exercises due care in accordance with reasonable commercial
standards to obtain and maintain the financial asset.
(d) This section does not apply to a clearing corporation that is
itself the obligor of an option or similar obligation to which its
entitlement holders have security entitlements.

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