§ 6A-8-504 - Duty of securities intermediary to maintain financial asset.
SECTION 6A-8-504
§ 6A-8-504 Duty of securities intermediaryto maintain financial asset. – (a) A securities intermediary shall promptly obtain and thereafter maintain afinancial asset in a quantity corresponding to the aggregate of all securityentitlements it has established in favor of its entitlement holders withrespect to that financial asset. The securities intermediary may maintain thosefinancial assets directly or through one or more other securitiesintermediaries.
(b) Except to the extent otherwise agreed by its entitlementholder, a securities intermediary may not grant any security interests in afinancial asset it is obligated to maintain pursuant to subsection (a).
(c) A securities intermediary satisfies the duty insubsection (a) if:
(1) the securities intermediary acts with respect to the dutyas agreed upon by the entitlement holder and the securities intermediary; or
(2) in the absence of agreement, the securities intermediaryexercises due care in accordance with reasonable commercial standards to obtainand maintain the financial asset.
(d) This section does not apply to a clearing corporationthat is itself the obligor of an option or similar obligation to which itsentitlement holders have security entitlements.