§ 26-1-8.1-509 — Standards for performance of duties by securities intermediary

Indiana § 26-1-8.1-509

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

Text

(a) If the substance of a duty imposed
upon a securities intermediary by IC 26-1-8.1-504 through IC 26-1-8.1-508 is the subject of other statute, regulation, or rule,
compliance with that statute, regulation, or rule satisfies the duty.
(b) To the extent that specific standards for the performance of the
duties of a securities intermediary or the exercise of the rights of an
entitlement holder are not specified by other statute, regulation, or rule
or by agreement between the securities intermediary and entitlement
holder, the securities intermediary shall perform its duties and the
entitlement holder shall exercise its rights in a commercially reasonable
manner.
(c) The obligation of a securities intermediary to perform the duties
imposed by IC 26-1-8.1-504 through IC 26-1-8.1-508 is subject to:
(1) rights of the securities intermediary arising out of a security
interest under a security agreement with the entitlement holder or
otherwise; and
(2) rights of the securities intermediary under other law,
regulation, rule, or agreement to withhold performance of its
duties as a result of unfulfilled obligations of the entitlement
holder to the securities intermediary.
(d) IC 26-1-8.1-504 through IC 26-1-8.1-508 do not require a
securities intermediary to take any action that is prohibited by other
statute, regulation, or rule.

Legislative History

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