PARRIS N. GLENDENING, Governor

Ch. 92

(2) IN THE ABSENCE OF AGREEMENT, THE SECURITIES INTERMEDIARY
EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE COMMERCIAL
STANDARDS TO COMPLY WITH THE ENTITLEMENT ORDER.

(B) IF A SECURITIES INTERMEDIARY TRANSFERS A FINANCIAL ASSET IN
ACCORDANCE WITH AN INEFFECTIVE ENTITLEMENT ORDER, THE SECURITIES
INTERMEDIARY SHALL REESTABLISH A SECURITY ENTITLEMENT IN FAVOR OF THE
PERSON ENTITLED TO IT, AND PAY OR CREDIT ANY PAYMENTS OR DISTRIBUTIONS
THAT THE PERSON DID NOT RECEIVE AS A RESULT OF THE WRONGFUL TRANSFER.
IF THE SECURITIES INTERMEDIARY DOES NOT REESTABLISH A SECURITY
ENTITLEMENT, THE SECURITIES INTERMEDIARY IS LIABLE TO THE ENTITLEMENT
HOLDER FOR DAMAGES.

8-508.

A SECURITIES INTERMEDIARY SHALL ACT AT THE DIRECTION OF AN
ENTITLEMENT HOLDER TO CHANGE A SECURITY ENTITLEMENT INTO ANOTHER
AVAILABLE FORM OF HOLDING FOR WHICH THE ENTITLEMENT HOLDER IS
ELIGIBLE, OR TO CAUSE THE FINANCIAL ASSET TO BE TRANSFERRED TO A
SECURITIES ACCOUNT OF THE ENTITLEMENT HOLDER WITH ANOTHER SECURITIES
INTERMEDIARY. A SECURITIES INTERMEDIARY SATISFIES THE DUTY IF:

(1)     THE SECURITIES INTERMEDIARY ACTS 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 FOLLOW THE DIRECTION OF THE ENTITLEMENT HOLDER.

8-509.

(A)    IF THE SUBSTANCE OF A DUTY IMPOSED UPON A SECURITIES
INTERMEDIARY BY §§ 8-504 THROUGH 8-508 OF THIS SUBTITLE IS THE SUBJECT OF
OTHER STATUTE, REGULATION, OR RULE, COMPLIANCE WITH THAT STATUTE,
REGULATION, OR RULE SATISFIES THE DUTY.

(B)     TO THE EXTENT THAT SPECIFIC STANDARDS FOR THE PERFORMANCE OF
THE DUTIES OF A SECURITIES INTERMEDIARY OR THE EXERCISE OF THE RIGHTS OF
AN ENTITLEMENT HOLDER ARE NOT SPECIFIED BY OTHER STATUTE, REGULATION,
OR RULE OR BY AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY AND
ENTITLEMENT HOLDER, THE SECURITIES INTERMEDIARY SHALL PERFORM ITS
DUTIES AND THE ENTITLEMENT HOLDER SHALL EXERCISE ITS RIGHTS IN A
COMMERCIALLY REASONABLE MANNER.

(C)     THE OBLIGATION OF A SECURITIES INTERMEDIARY TO PERFORM THE
DUTIES IMPOSED BY §§ 8-504 THROUGH 8-508 OF THIS SUBTITLE IS SUBJECT TO:

(1) RIGHTS OF THE SECURITIES INTERMEDIARY ARISING OUT OF A
SECURITY INTEREST UNDER A SECURITY AGREEMENT WITH THE ENTITLEMENT
HOLDER OR OTHERWISE; AND

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