§ 25-8-505. Duty of securities intermediary with respect to payments and distributions. - North Carolina Statutes

§25‑8‑505.  Duty of securities intermediary with respect to paymentsand distributions.

(a)        A securitiesintermediary shall take action to obtain a payment or distribution made by theissuer of a financial asset. A securities intermediary satisfies the duty 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 attempt to obtain the payment ordistribution.

(b)        A securitiesintermediary is obligated to its entitlement holder for a payment ordistribution made by the issuer of a financial asset if the payment ordistribution is received by the securities intermediary. (1997‑181,s. 1.)