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Section 440.8506 Duty of Securities Intermediary to Exercise Rights With Respect to Financial Asset; Conditions.

MI Comp L § 440.8506 (2019) (N/A)
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Sec. 8506.

A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. The duty is satisfied if the securities intermediary does either of the following:

(a) Acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.

(b) In the absence of agreement, 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.

History: Add. 1998, Act 278, Imd. Eff. July 27, 1998

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Section 440.8505 Obtaining Payment or Distribution Made by Issuer of Financial Asset; Duties and Obligations of Securities Intermediary.
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Section 440.8507 Compliance With Entitlement Order by Securities Intermediary; Conditions; Wrongful Transfer of Financial Asset Pursuant to Ineffective Entitlement Order; Liability.