8.8A-505 - A-505. Duty of securities intermediary with respect to payments and distributions. - Virginia Statutes

§ 8.8A-505. Duty of securities intermediary with respect to payments anddistributions.

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

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

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

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

(1996, c. 216.)