47-8-505 - Duty of securities intermediary with respect to payments and distributions. - Tennessee Statutes

47-8-505. Duty of securities intermediary with respect to payments and distributions.

(a)  A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:

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

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

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

[Acts 1997, ch. 79, § 1.]