§ 26-1-8.1-504 — Maintenance of financial assets by securities intermediary; exempted entity

Indiana § 26-1-8.1-504

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 8.1: Investment Securities

Text

(a) A securities intermediary shall
promptly obtain and thereafter maintain a financial asset in a quantity
corresponding to the aggregate of all security entitlements it has
established in favor of its entitlement holders with respect to that
financial asset. The securities intermediary may maintain those
financial assets directly or through one (1) or more other securities
intermediaries.
(b) Except to the extent otherwise agreed by its entitlement holder,
a securities intermediary may not grant any security interests in a
financial asset it is obligated to maintain under subsection (a).
(c) A securities intermediary satisfies the duty in subsection (a) 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
exercises due care in accordance with reasonable commercial
standards to obtain and maintain the financial asset.
(d) This section does not apply to a clearing corporation that is itself
the obligor of an option or similar obligation to which its entitlement
holders have security entitlements.

Legislative History

As added by P.L.247-1995, SEC.10.