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Home » US Law » 2022 Maryland Statutes » Commercial Law » Title 8 - Investment Securities » Subtitle 5 - Security Entitlements » Section 8-505 – Duty of Securities Intermediary With Respect to Payments and Distributions

    (a)    A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty 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 attempt to obtain the payment or distribution.

    (b)    A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.