§ 6A-8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holder. - Rhode Island Statutes

SECTION 6A-8-506

   § 6A-8-506  Duty of securities intermediaryto exercise rights as directed by entitlement holder. – A securities intermediary shall exercise rights with respect to a financialasset if directed to do so by an entitlement holder. 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 intermediaryeither places the entitlement holder in a position to exercise the rightsdirectly or exercises due care in accordance with reasonable commercialstandards to follow the direction of the entitlement holder.