Duty of securities intermediary to exercise rights with respect to financial asset; conditions.

Sec. 8506. A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. The duty is satisfied if the securities intermediary does either of the following: (a) Acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary. (b) In the absence of agreement, either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.