California Commercial Code

§ 8505

COM § 8505 Effective Jan 1, 1997Div. 8 · Ch. 5

Statute text

(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 it does either of the following:

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

(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.

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Legislative history

Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.