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Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 8. · Article 8. INVESTMENT SECURITIES · Part 5. SECURITY ENTITLEMENTS

11-8-505. Duty of securities intermediary with respect to payments and distributions.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. (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. (1)

      The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or#

    2. (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.#

  2. (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.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 11-8-505, enacted by Ga. L. 1998, p. 1323, § 1.

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, page 696; merge action: carried; file SHA-256 ad397fccbf21.