N.Y. Uniform Commercial Code Law § 8-508: Duty of Securities Intermediary to change Entitlement Holder's Position to Other Form of Security Holding

Section 8--508. Duty of Securities Intermediary to change Entitlement

Holder's Position to Other Form of Security Holding.

A securities intermediary shall act at the direction of an entitlement

holder to change a security entitlement into another available form of

holding for which the entitlement holder is eligible, or to cause the

financial asset to be transferred to a securities account of the

entitlement holder with another securities intermediary. A securities

intermediary satisfies the duty if:

(1) the securities intermediary acts 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 follow the direction of the entitlement holder.