Indiana § 26-1-8.1-506 Duty of securities intermediary to exercise rights as directed by
entitlement holder

Indiana Statutes

§ 26-1-8.1-506 — Duty of securities intermediary to exercise rights as directed by entitlement holder

Indiana § 26-1-8.1-506

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 8.1Investment Securities

This text of Indiana § 26-1-8.1-506 (Duty of securities intermediary to exercise rights as directed by entitlement holder) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-8.1-506 (2026).

Text

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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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.