2006 New York Code - Duty Of Securities Intermediary To Maintain Financial Asset.

 
  Section 8--504. Duty  of  Securities  Intermediary to Maintain Financial
                    Asset.
    (a) A securities intermediary shall  promptly  obtain  and  thereafter
  maintain  a financial asset in a quantity corresponding to the aggregate
  of all  security  entitlements  it  has  established  in  favor  of  its
  entitlement holders with respect to that financial asset. The securities
  intermediary may maintain those financial assets directly or through one
  or more other securities intermediaries.
    (b) Except to the extent otherwise agreed by its entitlement holder, a
  securities  intermediary  may  not  grant  any  security  interests in a
  financial asset it is obligated to maintain pursuant to subsection (a).
    (c) A securities intermediary satisfies the duty in subsection (a) 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 obtain and maintain the financial asset.
    (d) This section does not apply to  a  clearing  corporation  that  is
  itself  the  obligor  of  an  option  or similar obligation to which its
  entitlement holders have security entitlements.