Del. Code Ann. tit. 6, § 8-505 – Duty of securities intermediary with respect to payments and distributions | Midpage
§ 8-505
Del. Code Ann. tit. 6, § 8-505
Duty of securities intermediary with respect to payments and distributions
71 Del. Laws, c. 75, § 1;
(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.