Company: North Carolina General Assembly

North Carolina Attorney General Opinion

§ 25‑8‑505.  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. (1997‑181, s. 1.)

G.S. 25-8-505		Page