RS 10:8-505 Duty of securities intermediary with respect to payments and distributions - Louisiana Statutes

§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.

Acts 1995, No. 884, §1, eff. Jan. 1, 1996.