400.8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder. - Missouri Statutes

Duty of securities intermediary to exercise rights as directed byentitlement holder.

400.8-506. A securities intermediary shall exercise rights withrespect to a financial asset if directed to do so by an entitlement holder.A securities intermediary satisfies the duty if:

(1) The securities intermediary acts with respect to the duty asagreed upon by the entitlement holder and the securities intermediary; or

(2) In the absence of agreement, the securities intermediary eitherplaces the entitlement holder in a position to exercise the rights directlyor exercises due care in accordance with reasonable commercial standards tofollow the direction of the entitlement holder.

(L. 1997 S.B. 6)