N.Y. Uniform Commercial Code Law § 8-509: Specification of Duties of Securities Intermediary by Other Statute or Regulation; Manner of Performance of Duties of Securities Intermed...

Section 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.

(a) If the substance of a duty imposed upon a securities intermediary

by Sections 8--504 through 8--508 is the subject of other statute,

regulation, or rule, compliance with that statute, regulation, or rule

satisfies the duty.

(b) 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 and the

entitlement holder shall exercise its rights in a commercially

reasonable manner.

(c) The obligation of a securities intermediary to perform the duties

imposed by Sections 8--504 through 8--508 is subject to:

(1) rights of the securities intermediary arising out of a

security interest under a security agreement with the

entitlement holder or otherwise; and

(2) rights of the securities intermediary under other law,

regulation, rule, or agreement to withhold performance of its

duties as a result of unfulfilled obligations of the

entitlement holder to the securities intermediary.

(d) Sections 8--504 through 8--508 do not require a securities

intermediary to take any action that is prohibited by other statute,

regulation, or rule.