§ 6A-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 ho
SECTION 6A-8-509
§ 6A-8-509 Specification of duties ofsecurities intermediary by other statute or regulation; manner of performanceof duties of securities intermediary and exercise of rights of entitlementholder. – (a) If the substance of a duty imposed upon a securities intermediary by§§ 6A-8-504 through 6A-8-508 is the subject of other statute,regulation, or rule, compliance with that statute, regulation, or rulesatisfies the duty.
(b) To the extent that specific standards for the performanceof the duties of a securities intermediary or the exercise of the rights of anentitlement holder are not specified by other statute, regulation, or rule orby agreement between the securities intermediary and entitlement holder, thesecurities intermediary shall perform its duties and the entitlement holdershall exercise its rights in a commercially reasonable manner.
(c) The obligation of a securities intermediary to performthe duties imposed by §§ 6A-8-504 through 6A-8-508 is subject to:
(1) rights of the securities intermediary arising out of asecurity interest under a security agreement with the entitlement holder orotherwise; and
(2) rights of the securities intermediary under other law,regulation, rule, or agreement to withhold performance of its duties as aresult of unfulfilled obligations of the entitlement holder to the securitiesintermediary.
(d) Sections 6A-8-504 through 6A-8-508 do not require asecurities intermediary to take any action that is prohibited by other statute,regulation, or rule.