California Commercial Code

§ 8507

COM § 8507 Effective Jan 1, 1997Div. 8 · Ch. 5

Statute text

(a)A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. A securities intermediary satisfies the duty if it does either of the following:

(1)The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.

(2)In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.

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Legislative history

Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.