8.8A-509 - A-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
§ 8.8A-509. Specification of duties of securities intermediary by otherstatute or regulation; manner of performance of duties of securitiesintermediary and exercise of rights of entitlement holder.
(a) If the substance of a duty imposed upon a securities intermediary by §§8.8A-504 through 8.8A-508 is the subject of other statute, regulation, orrule, compliance with that statute, regulation, or rule satisfies the duty.
(b) To the extent that specific standards for the performance of the dutiesof a securities intermediary or the exercise of the rights of an entitlementholder are not specified by other statute, regulation, or rule or byagreement 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 perform the duties imposedby §§ 8.8A-504 through 8.8A-508 is subject to:
(1) rights of the securities intermediary arising out of a security interestunder a security agreement with the entitlement holder or otherwise; and
(2) rights of the securities intermediary under other law, regulation, rule,or agreement to withhold performance of its duties as a result of unfulfilledobligations of the entitlement holder to the securities intermediary.
(d) Sections 8.8A-504 through 8.8A-508 do not require a securitiesintermediary to take any action that is prohibited by other statute,regulation, or rule.
(1996, c. 216.)