§8-504. Duty of securities intermediary to maintain financial asset

Link to law: http://legislature.vermont.gov/statutes/section/09A/008/00504
Published: 2015

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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

008

:
Investment Securities











 

§

8-504. Duty of securities intermediary to maintain financial asset

(a) A securities

intermediary shall promptly obtain and thereafter maintain a financial asset in

a quantity corresponding to the aggregate of all security entitlements it has

established in favor of its entitlement holders with respect to that financial

asset. The securities intermediary may maintain those financial assets directly

or through one or more other securities intermediaries.

(b) Except to

the extent otherwise agreed by its entitlement holder, a securities

intermediary may not grant any security interests in a financial asset it is

obligated to maintain pursuant to subsection (a).

(c) A securities

intermediary satisfies the duty in subsection (a) 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 obtain and maintain the

financial asset.

(d) This section

does not apply to a clearing corporation that is itself the obligor of an

option or similar obligation to which its entitlement holders have security

entitlements. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997.)
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