2021 Code of Alabama
Title 7 - Commercial Code.
Article 8 - Investment Securities.
Part 5 - Security Entitlements.
Section 7-8-508 - Duty of Securities Intermediary to Change Entitlement Holder's Position to Other Form of Security Holding.
Duty of securities intermediary to change entitlement holder's position to other form of security holding.
A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:
(1) the securities intermediary acts 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 follow the direction of the entitlement holder.
(Acts 1996, No. 96-742, p. 1241, §1.)