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Illinois Statutes Chapter 810. Commercial Code § 5/8-505. Duty of securities intermediary with respect to payments and distributions

Current as of January 01, 2022 | Updated by FindLaw Staff

§ 8-505. Duty of securities intermediary with respect to payments and distributions.

(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.

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Cite this article: FindLaw.com - Illinois Statutes Chapter 810. Commercial Code § 5/8-505. Duty of securities intermediary with respect to payments and distributions - last updated January 01, 2022 | https://codes.findlaw.com/il/chapter-810-commercial-code/il-st-sect-810-5-8-505/

Read this complete Illinois Statutes Chapter 810. Commercial Code § 5/8-505. Duty of securities intermediary with respect to payments and distributions on Westlaw

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