§ 6A-8-505 - Duty of securities intermediary with respect to payments and distributions. - Rhode Island Statutes

SECTION 6A-8-505

   § 6A-8-505  Duty of securities intermediarywith respect to payments and distributions. – (a) A securities intermediary shall take action to obtain a payment ordistribution made by the issuer of a financial asset. A securities intermediarysatisfies the duty if:

   (1) the securities intermediary acts with respect to the dutyas agreed upon by the entitlement holder and the securities intermediary; or

   (2) in the absence of agreement, the securities intermediaryexercises due care in accordance with reasonable commercial standards toattempt to obtain the payment or distribution.

   (b) A securities intermediary is obligated to its entitlementholder for a payment or distribution made by the issuer of a financial asset ifthe payment or distribution is received by the securities intermediary.