§ 25-8-509. 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. - North Carolina Statutes

§ 25‑8‑509. Specification of duties of securities intermediary by other statute orregulation; manner of performance of duties of securities intermediary andexercise of rights of entitlement holder.

(a)        If the substance ofa duty imposed upon a securities intermediary by G.S. 25‑8‑504through G.S. 25‑8‑508 is the subject of other statute, regulation,or rule, compliance with that statute, regulation, or rule satisfies the duty.

(b)        To the extent thatspecific standards for the performance of the duties of a securitiesintermediary or the exercise of the rights of an entitlement holder are notspecified by other statute, regulation, or rule or by agreement between thesecurities intermediary and entitlement holder, the securities intermediaryshall perform its duties and the entitlement holder shall exercise its rightsin a commercially reasonable manner.

(c)        The obligation of asecurities intermediary to perform the duties imposed by G.S. 25‑8‑504through G.S. 25‑8‑508 is subject to:

(1)        Rights of the securitiesintermediary arising out of a security interest under a security agreement withthe entitlement holder or otherwise; and

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

(d)        G.S. 25‑8‑504through G.S. 25‑8‑508 do not require a securities intermediary totake any action that is prohibited by other statute, regulation, or rule. (1997‑181,s. 1.)