§ 41-08-44 — (8-504) Duty of securities intermediary to maintain financial asset

North Dakota § 41-08-44

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-08: Investment Securities

Text

1. 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 or
more other securities intermediaries.
2. 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 pursuant to subsection 1.
3. A securities intermediary satisfies the duty in subsection 1 if:
a. The securities intermediary acts with respect to the duty as agreed upon by the
entitlement holder and the securities intermediary; or
b. In the absence of agreement, the securities intermediary exercises due care in
accordance with reasonable commercial standards to obtain and maintain the
financial asset.
4. 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.