8.8A-508 - A-508. Duty of securities intermediary to change entitlement holder's position to other form of security holding. - Virginia Statutes

§ 8.8A-508. Duty of securities intermediary to change entitlement holder'sposition to other form of security holding.

A securities intermediary shall act at the direction of an entitlement holderto change a security entitlement into another available form of holding forwhich the entitlement holder is eligible, or to cause the financial asset tobe transferred to a securities account of the entitlement holder with anothersecurities intermediary. A securities intermediary satisfies the duty if:

(1) the securities intermediary acts as agreed upon by the entitlement holderand the securities intermediary; or

(2) in the absence of agreement, the securities intermediary exercises duecare in accordance with reasonable commercial standards to follow thedirection of the entitlement holder.

(1996, c. 216.)