HARRY HUGHES, Governor

2733

(4) A "FINANCIAL INTERMEDIARY" IS A BANK, BROKER, CLEARING
CORPORATION OR OTHER PERSON (OR THE NOMINEE OF ANY OF THEM) WHICH
IN THE ORDINARY COURSE OF BUSINESS MAINTAINS SECURITY ACCOUNTS
FOR ITS CUSTOMERS AND IS ACTING IN THAT CAPACITY. A FINANCIAL
INTERMEDIARY MAY HAVE A SECURITY INTEREST IN SECURITIES HELD IN
ACCOUNT FOR ITS CUSTOMER.

8-314.

(1) Unless otherwise agreed [where] IF a sale of a security
is made on an exchange or otherwise through brokers:

(a)  The selling customer fulfills his duty to
[deliver when] TRANSFER AT THE TIME [he] HE:

(I)   [places such] PLACES a CERTIFICATED
security in the possession of the selling broker or of a person
designated by the broker; [or]

(II)  CAUSES AN UNCERTIFICATED SECURITY TO BE
REGISTERED IN THE NAME OF THE SELLING BROKER OR A PERSON
DESIGNATED BY THE BROKER;

(III)    [if] IF requested, causes an
acknowledgment to be made to the selling broker that [it] A
CERTIFICATED OR UNCERTIFICATED SECURITY is held for [him; and]
THE BROKER; OR

(IV)  PLACES IN THE POSSESSION OF THE SELLING
BROKER OR OF A PERSON DESIGNATED BY THE BROKER A TRANSFER
INSTRUCTION FOR AN UNCERTIFICATED SECURITY, PROVIDING THE ISSUER
DOES NOT REFUSE TO REGISTER THE REQUESTED TRANSFER IF THE
INSTRUCTION IS PRESENTED TO THE ISSUER FOR REGISTRATION WITHIN 30
DAYS THEREAFTER; AND

(b)  The selling broker including a correspondent
broker acting for a selling customer fulfills his duty to
[deliver] TRANSFER AT THE TIME HE:

(I)   [by placing the] PLACES A CERTIFICATED
security [or a like security] in the possession of the buying
broker or a person designated by [him or] THE BUYING BROKER;

(II)  CAUSES AN UNCERTIFICATED SECURITY TO BE
REGISTERED IN THE NAME OF THE BUYING BROKER OR OF A PERSON
DESIGNATED BY THE BUYING BROKER;

(III)  PLACES IN THE POSSESSION OF THE BUYING
BROKER OR OF A PERSON DESIGNATED BY THE BUYING BROKER A TRANSFER
INSTRUCTION FOR AN UNCERTIFICATED SECURITY, PROVIDING THE ISSUER
DOES NOT REFUSE TO REGISTER THE REQUESTED TRANSFER IF THE
INSTRUCTION IS PRESENTED TO THE ISSUER FOR REGISTRATION WITHIN 30
DAYS THEREAFTER; OR