Section 8-505 - Duty of securities intermediary with respect to payments and distributions. - Maryland 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. 
 

[1996, ch. 92, § 2.]