New York § 8-506 Duty of Securities Intermediary to Exercise Rights as directed by Entitlement Holder

New York Statutes

§ 8-506 — Duty of Securities Intermediary to Exercise Rights as directed by Entitlement Holder

New York § 8-506

Law UCCUniform Commercial Code

Part 5Security Entitlements

Art. 8Investment Securities

This text of New York § 8-506 (Duty of Securities Intermediary to Exercise Rights as directed by Entitlement Holder) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 8-506 (2026).

Text

Section 8--506. Duty of Securities Intermediary to Exercise Rights as\n                  directed by Entitlement Holder.\n  A securities intermediary shall exercise rights with respect to a\nfinancial asset if directed to do so by an entitlement holder. A\nsecurities intermediary satisfies the duty if:\n  (1) the securities intermediary acts with respect to the duty as\nagreed upon by the entitlement holder and the securities intermediary;\nor\n  (2) in the absence of agreement, the securities intermediary either\nplaces the entitlement holder in a position to exercise the rights\ndirectly or exercises due care in accordance with reasonable commercial\nstandards to follow the direction of the entitlement holder.\n

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Section 8--506. Duty of Securities Intermediary to Exercise Rights as\n directed by Entitlement Holder.\n A securities intermediary shall exercise rights with respect to a\nfinancial asset if directed to do so by an entitlement holder. A\nsecurities intermediary satisfies the duty if:\n (1) the securities intermediary acts with respect to the duty as\nagreed upon by the entitlement holder and the securities intermediary;\nor\n (2) in the absence of agreement, the securities intermediary either\nplaces the entitlement holder in a position to exercise the rights\ndirectly or exercises due care in accordance with reasonable commercial\nstandards to follow the direction of the entitlement holder.\n