400.8-509. Specification of duties of securities intermediary by other statute or regulation--manner of performance of duties of securities intermediary and exercise of rights of entitlement holder. - Missouri Statutes

Specification of duties of securities intermediary by other statuteor regulation--manner of performance of duties of securitiesintermediary and exercise of rights of entitlement holder.

400.8-509. (a) If the substance of a duty imposed upon asecurities intermediary by sections 400.8-504 through 400.8-508 is thesubject of other statute, regulation or rule, compliance with that statute,regulation or rule satisfies the duty.

(b) To the extent that specific standards for the performance of theduties of a securities intermediary or the exercise of the rights of anentitlement holder are not specified by other statute, regulation or ruleor by agreement between the securities intermediary and entitlement holder,the securities intermediary shall perform its duties and the entitlementholder shall exercise its rights in a commercially reasonable manner.

(c) The obligation of a securities intermediary to perform the dutiesimposed by sections 400.8-504 through 400.8-508 is subject to:

(1) Rights of the securities intermediary arising out of a securityinterest under a security agreement with the entitlement holder orotherwise; and

(2) Rights of the securities intermediary under other law,regulation, rule or agreement to withhold performance of its duties as aresult of unfulfilled obligations of the entitlement holder to thesecurities intermediary.

(d) Sections 400.8-504 through 400.8-508 do not require a securitiesintermediary to take any action that is prohibited by other statute,regulation or rule.

(L. 1997 S.B. 6)