70A-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
70A-8-509. Specification of duties of securities intermediary by other statute orregulation -- Manner of performance of duties of securities intermediary and exercise ofrights of entitlement holder.
(1) If the substance of a duty imposed upon a securities intermediary by Sections70A-8-504 through 70A-8-508 is the subject of other statute, regulation, or rule, compliance withthat statute, regulation, or rule satisfies the duty.
(2) To the extent that specific standards for the performance of the duties of a securitiesintermediary or the exercise of the rights of an entitlement holder are not specified by otherstatute, regulation, or rule or by agreement between the securities intermediary and entitlementholder, the securities intermediary shall perform its duties and the entitlement holder shallexercise its rights in a commercially reasonable manner.
(3) The obligation of a securities intermediary to perform the duties imposed by Sections70A-8-504 through 70A-8-508 is subject to:
(a) rights of the securities intermediary arising out of a security interest under a securityagreement with the entitlement holder or otherwise; and
(b) rights of the securities intermediary under other law, regulation, rule, or agreement towithhold performance of its duties as a result of unfulfilled obligations of the entitlement holder tothe securities intermediary.
(4) Sections 70A-8-504 through 70A-8-508 do not require a securities intermediary totake any action that is prohibited by other statute, regulation, or rule.
Enacted by Chapter 204, 1996 General Session