2021 Code of Alabama
Title 7 - Commercial Code.
Article 8 - Investment Securities.
Part 5 - Security Entitlements.
Section 7-8-505 - Duty of Securities Intermediary With Respect to Payments and Distributions.
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.
(Acts 1996, No. 96-742, p. 1241, §1.)