Statutes > Arkansas Statutes > Title 4 - Business and Commercial Law > Subtitle 1 - Uniform Commercial Code > Chapter 8 - Investment Securities > Part 5 - Security Entitlements > § 4-8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holder.

§ 4-8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holder.

4-8-506. Duty of securities intermediary to exercise rights as directed by entitlement holder.

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.