62A.8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holder. - Washington Statutes

Duty of securities intermediary to exercise rights as directed by entitlement holder.

A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. 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 either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.

[1995 c 48 § 46.]

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