§ 6A-8-505. Duty of securities intermediary with respect to payments and distributions.
(a) 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:
(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 attempt to obtain the payment or distribution.
(b) 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 of Section.P.L. 2000, ch. 182, § 5; P.L. 2000, ch. 420, § 5.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-8 - Investment Securities
Part 5 - Security Entitlements
Section 6A-8-502. - Assertion of adverse claim against entitlement holder.
Section 6A-8-504. - Duty of securities intermediary to maintain financial asset.
Section 6A-8-505. - Duty of securities intermediary with respect to payments and distributions.
Section 6A-8-507. - Duty of securities intermediary to comply with entitlement order.
Section 6A-8-510. - Rights of purchaser of security entitlement from entitlement holder.
Section 6A-8-511. - Priority among security interests and entitlement holders.