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New Jersey Statutes, Title: 12A, COMMERCIAL TRANSACTIONS
Chapter 8:
Section: 12A: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.
L.1997,c.252,s.1.
This section added to the Rutgers Database: 2013-06-10 16:36:30.
Older versions of 12a:8-505 (if available):
Court decisions that cite this statute:
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