§ 25-8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder. - North Carolina Statutes

§25‑8‑506.  Duty of securities intermediary to exercise rights asdirected by entitlement holder.

A securities intermediaryshall exercise rights with respect to a financial asset if directed to do so byan entitlement holder. 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 either places the entitlement holder ina position to exercise the rights directly or exercises due care in accordancewith reasonable commercial standards to follow the direction of the entitlementholder. (1997‑181, s. 1.)