§ 25-8-504. Duty of securities intermediary to maintain financial asset. - North Carolina Statutes

§25‑8‑504.  Duty of securities intermediary to maintain financialasset.

(a)        A securitiesintermediary shall promptly obtain and thereafter maintain a financial asset ina quantity corresponding to the aggregate of all security entitlements it hasestablished in favor of its entitlement holders with respect to that financialasset. The securities intermediary may maintain those financial assets directlyor through one or more other securities intermediaries.

(b)        Except to theextent otherwise agreed by its entitlement holder, a securities intermediarymay not grant any security interests in a financial asset it is obligated tomaintain pursuant to subsection (a) of this section.

(c)        A securitiesintermediary satisfies the duty in subsection (a) of this section if:

(1)        The securitiesintermediary acts with respect to the duty as agreed upon by the entitlementholder and the securities intermediary; or

(2)        In the absence ofagreement, the securities intermediary exercises due care in accordance withreasonable commercial standards to obtain and maintain the financial asset.

(d)        This section doesnot apply to a clearing corporation that is itself the obligor of an option orsimilar obligation to which its entitlement holders have security entitlements.(1997‑181, s. 1.)