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. (1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
2. (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.

HISTORY: 2001 Act No. 67, Section 5. "Agreement" Section 1-201(3) "Entitlement holder" Section 8-102(a)(7) "Financial asset" Section 8-102(a)(9) "Securities intermediary" Section 8-102(a)(14) "Security entitlement" Section 8-102(a)(17)