{"data":{"id":"us-ky/krs-355.8-504","jurisdiction":"us-ky","citation":"KRS 355.8-504","heading":"Duties of securities intermediary to maintain financial asset.","body":"(1) A securities intermediary shall promptly obtain and thereafter maintain a financial\nasset in a quantity corresponding to the aggregate of all security entitlements it has\nestablished in favor of its entitlement holders with respect to that financial asset.\nThe securities intermediary may maintain those financial assets directly or through\none or more other securities intermediaries.\n(2) Except to the extent otherwise agreed by its entitlement holder, a securities\nintermediary may not grant any security inte rests in a financial asset it is obligated\nto maintain pursuant to subsection (1) of this section.\n(3) A securities intermediary satisfies the duty in subsection (1) of this section if:\n(a) The securities intermediary acts with respect to the duty as agreed upon by the\nentitlement holder and the securities intermediary; or\n(b) In the absence of agreement, the securities intermediary exercises due care in\naccordance with reasonable commercial standards to obtain and maintain the\nfinancial asset.\n(4) This section does not apply to a clearing corporation that is itself the obligor of an\noption or similar obligation to which its entitlement holders have security\nentitlements.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33720","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:47Z","sha256":"dc34e0d6c417b09ac2a4cb2194c9a9f95b6272afb61a9cd2ba97c767c6ba81b0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-503","next":"us-ky/krs-355.8-505"},"notice":"GroundRules: Original legal text. Not legal advice."}