Alabama Statutes

§ 7-8-508 — Duty of Securities Intermediary to Change Entitlement Holder’s Position to Other Form of Security Holding

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

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.

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Alabama § 7-8-508 (Duty of Securities Intermediary to Change Entitlement Holder’s Position to Other Form of Security Holding) — 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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