KRS 355.8-505: Duty of securities intermediary with respect to payments and

distributions.

(1) 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:

(a) The securities intermediary acts with respect to the duty as agreed upon by the

entitlement holder and the securities intermediary; or

(b) In the absence of agreement, the securities intermediary exercises due care in

accordance with reasonable commer cial standards to attempt to obtain the

payment or distribution.

(2) 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.