N.Y. Uniform Commercial Code Law Section 8-505
Duty of Securities Intermediary with respect to Payments and Distributions

Section 8--505. 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.

Source: Section 8-505 — Duty of Securities Intermediary with respect to Payments and Distributions, https://www.­nysenate.­gov/legislation/laws/UCC/8-505 (updated Sep. 22, 2014; accessed Apr. 27, 2024).

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Accessed:
Apr. 27, 2024

Last modified:
Sep. 22, 2014

§ 8-505’s source at nysenate​.gov

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