Alabama Statutes

§ 7-8-506 — Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder

Alabama·Title 7 Commercial Code·Art. 8 Investment Securities·Part 5 Security Entitlements

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.

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Alabama § 7-8-506 (Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

(Acts 1996, No. 96-742, p. 1241, §1.)

Nearby Sections

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