8.8A-506 - A-506. Duty of securities intermediary to exercise rights as directed by entitlement holder. - Virginia Statutes

§ 8.8A-506. Duty of securities intermediary to exercise rights as directed byentitlement holder.

A securities intermediary shall exercise rights with respect to a financialasset if directed to do so by an entitlement holder. 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 either placesthe entitlement holder in a position to exercise the rights directly orexercises due care in accordance with reasonable commercial standards tofollow the direction of the entitlement holder.

(1996, c. 216.)