2020 Code of Alabama
Title 7 - Commercial Code.
Article 8 - Investment Securities.
Part 5 - Security Entitlements.
Section 7-8-506 - Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder.

Universal Citation: AL Code § 7-8-506 (2020)

Section 7-8-506

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.

(Acts 1996, No. 96-742, p. 1241, §1.)

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