62A.8-505 - Duty of securities intermediary with respect to payments and distributions. - Washington Statutes

Duty of securities intermediary with respect to payments and distributions.

(1) 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:

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

     (b) 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.

     (2) 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.

[1995 c 48 § 45.]

Notes: Effective date -- 1995 c 48: See RCW 62A.11-113.