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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.)