§ 41-08-49 — (8-509) Specification of duties of securities intermediary by other statute or regulation - Manner of performance of duties of securities intermediary and exercise of rights of entitlement holder

regulation - Manner of performance of duties of securities intermediary and exercise of
rights of entitlement holder.
1. If the substance of a duty imposed upon a securities intermediary by sections
41-08-44 through 41-08-48 is the subject of other statute, regulation, or rule,
compliance with that statute, regulation, or rule satisfies the duty.
2. 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.
3. The obligation of a securities intermediary to perform the duties imposed by sections
41-08-44 through 41-08-48 is subject to:
a. Rights of the securities intermediary arising out of a security interest under a
security agreement with the entitlement holder or otherwise; and
b. 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.
4. Sections 41-08-44 through 41-08-48 do not require a securities intermediary to take
any action that is prohibited by other statute, regulation, or rule.