Ch. 92
1996 LAWS OF MARYLAND
(D) THIS SECTION DOES NOT APPLY TO A CLEARING CORPORATION THAT IS
ITSELF THE OBLIGOR OF AN OPTION OR SIMILAR OBLIGATION TO WHICH ITS
ENTITLEMENT HOLDERS HAVE SECURITY ENTITLEMENTS.
8-505.
(A) A SECURITIES INTERMEDIARY SHALL TAKE ACTION TO OBTAIN A
PAYMENT OR DISTRIBUTION MADE BY THE ISSUER OF A FINANCIAL ASSET. A
SECURITIES INTERMEDIARY SATISFIES THE DUTY IF:
(1) THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE DUTY
AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES
INTERMEDIARY; OR
(2) IN THE ABSENCE OF AGREEMENT, THE SECURITIES INTERMEDIARY
EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE COMMERCIAL
STANDARDS TO ATTEMPT TO OBTAIN THE PAYMENT OR DISTRIBUTION.
(B) A SECURITIES INTERMEDIARY IS OBLIGATED TO ITS ENTITLEMENT
HOLDER FOR A PAYMENT OR DISTRIBUTION MADE BY THE ISSUER OF A FINANCIAL
ASSET IF THE PAYMENT OR DISTRIBUTION IS RECEIVED BY THE SECURITIES
INTERMEDIARY.
8-506.
A SECURITIES INTERMEDIARY SHALL EXERCISE RIGHTS WITH RESPECT TO A
FINANCIAL ASSET IF DIRECTED TO DO SO BY AN ENTITLEMENT HOLDER. A
SECURITIES INTERMEDIARY SATISFIES THE DUTY IF:
(1) THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE DUTY
AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES
INTERMEDIARY; OR
(2) IN THE ABSENCE OF AGREEMENT, THE SECURITIES INTERMEDIARY
EITHER PLACES THE ENTITLEMENT HOLDER IN A POSITION TO EXERCISE THE
RIGHTS DIRECTLY OR EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE
COMMERCIAL STANDARDS TO FOLLOW THE DIRECTION OF THE ENTITLEMENT
HOLDER.
8-507.
(A) A SECURITIES INTERMEDIARY SHALL COMPLY WITH AN ENTITLEMENT
ORDER IF THE ENTITLEMENT ORDER IS ORIGINATED BY THE APPROPRIATE
PERSON, THE SECURITIES INTERMEDIARY HAS HAD REASONABLE OPPORTUNITY TO
ASSURE ITSELF THAT THE ENTITLEMENT ORDER IS GENUINE AND AUTHORIZED,
AND THE SECURITIES INTERMEDIARY HAS HAD REASONABLE OPPORTUNITY TO
COMPLY WITH THE ENTITLEMENT ORDER. A SECURITIES INTERMEDIARY SATISFIES
THE DUTY IF:
(1) THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE DUTY
AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES
INTERMEDIARY; OR
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