Duty of Securities Intermediary to Change Entitlement Holder's Position to Other Forms of Security Holding.
A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:
(1)the securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or
(2)in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
Added by Laws 1995, c. 242, § 48, eff. Feb. 1, 1996.
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