(a) If the substance of a duty imposed upon a securities intermediary by Sections 36-8-504 through 36-8-508 is the subject of other statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty.
(b) To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.
(c) The obligation of a securities intermediary to perform the duties imposed by Sections 36-8-504 through 36-8-508 is subject to:
(1) rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and
(2) rights of the securities intermediary under other law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.
(d) Sections 36-8-504 through 36-8-508 do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.
HISTORY: 2001 Act No. 67, Section 5.
Structure South Carolina Code of Laws
Chapter 8 - Commercial Code - Investment Securities
Section 36-8-101. Short title.
Section 36-8-102. Definitions.
Section 36-8-104. Acquisition of security or financial asset or interest therein.
Section 36-8-105. Notice of adverse claim.
Section 36-8-107. Whether indorsement, instruction, or entitlement order is effective.
Section 36-8-108. Warranties in direct holding.
Section 36-8-109. Warranties in indirect holding.
Section 36-8-110. Applicability; choice of law.
Section 36-8-111. Clearing corporation rules.
Section 36-8-112. Creditor's legal process.
Section 36-8-113. Statute of frauds inapplicable.
Section 36-8-114. Evidentiary rules concerning certificated securities.
Section 36-8-115. Securities intermediary and others not liable to adverse claimant.
Section 36-8-116. Securities intermediary as purchaser for value.
Section 36-8-202. Issuer's responsibility and defenses; notice of defect or defense.
Section 36-8-203. Staleness as notice of defect or defense.
Section 36-8-204. Effect of issuer's restriction on transfer.
Section 36-8-205. Effect of unauthorized signature on security certificate.
Section 36-8-206. Completion or alteration of security certificate.
Section 36-8-207. Rights and duties of issuer with respect to registered owners.
Section 36-8-208. Effect of signature of authenticating trustee, registrar, or transfer agent.
Section 36-8-209. Issuer's lien.
Section 36-8-302. Rights of purchaser.
Section 36-8-303. Protected purchaser.
Section 36-8-304. Indorsement.
Section 36-8-305. Instruction.
Section 36-8-306. Effect of guaranteeing signature, indorsement, or instruction.
Section 36-8-307. Registration of transfer of security; proof of authority to transfer.
Section 36-8-401. Duty of issuer to register transfer.
Section 36-8-402. Assurance that indorsement or instruction is effective.
Section 36-8-403. Demand that issuer not register transfer.
Section 36-8-404. Wrongful registration.
Section 36-8-405. Replacement of lost, destroyed, or wrongfully taken security certificate.
Section 36-8-407. Authenticating trustee, transfer agent, and registrar.
Section 36-8-502. Assertion of adverse claim against entitlement holder.
Section 36-8-504. Duty of securities intermediary to maintain financial asset.
Section 36-8-505. Duty of securities intermediary with respect to payments and distributions.
Section 36-8-507. Duty of securities intermediary to comply with entitlement order.
Section 36-8-510. Rights of purchaser of security entitlement from entitlement holder.
Section 36-8-511. Priority among security interests and entitlement holders.