N.Y. Uniform Commercial Code Law § 8-505: Duty of Securities Intermediary with respect to Payments and Distributions

Section 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.