§ 8506. 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:
(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.
Cross References. Section 8506 is referred to in sections 8503, 8509 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 85 - Security Entitlements
Section 8501 - Securities account; acquisition of security entitlement from securities intermediary
Section 8502 - Assertion of adverse claim against entitlement holder
Section 8504 - Duty of securities intermediary to maintain financial asset
Section 8505 - Duty of securities intermediary with respect to payments and distributions
Section 8506 - Duty of securities intermediary to exercise rights as directed by entitlement holder
Section 8507 - Duty of securities intermediary to comply with entitlement order
Section 8510 - Rights of purchaser of security entitlement from entitlement holder
Section 8511 - Priority among security interests and entitlement holders