KRS 355.8-509: Specification of duties of securities intermediary by other statute or

regulation -- Manner of performance of duties of securities intermediary and

exercise of rights of entitlement holder.

(1) If the substance of a duty imposed upon a securities intermediary by KRS 355.8-504

to 355.8-508 is the subject of other statute, regulation, or rule, compliance with that

statute, regulation, or rule satisfies the duty.

(2) To the extent that specific standards for the performance of the duties of a securities

intermediary or the exercise of the rights of an entitlement holder are not specified

by other statute, regulation, or rule or by agreement between the securities

intermediary and entitlement holder, the securities intermediary shall perform its

duties an d the entitlement holder shall exercise its rights in a commercially

reasonable manner.

(3) The obligation of a securities intermediary to perform the duties imposed by KRS

355.8-504 to 355.8-508 is subject to:

(a) Rights of the securities intermediary ari sing out of a security interest under a

security agreement with the entitlement holder or otherwise; and

(b) Rights of the securities intermediary under other law, regulation, rule, or

agreement to withhold performance of its duties as a result of unfulfil led

obligations of the entitlement holder to the securities intermediary.

(4) KRS 355.8 -504 to 355.8 -508 do not require a securities intermediary to take any

action that is prohibited by other statute, regulation, or rule.