12A:8-506 - Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder - New Jersey Statutes

12A:8-506.  Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder.

A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder.  A securities intermediary satisfies the duty if:

a.  the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or

b.  in the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.

L.1997,c.252,s.1.